appropriate factor(s) from the tables provided.) Required: a. Calculate the issue price of the bond assuming a market interest rate of 12.0% on the date of the bond issue. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Part 1 Record the following entries: (Round your intermediate calculations and final answers to the nearest whole dollar.) Issuance of the bonds on October 1, 2023. Adjusting entry to accrue bond interest and discount amortization on November 30, 2023. Payment of interest on October 1, 2024. Part 2 Show how the bond will appear on the balance sheet under non-current liabilities at November 30, 2027. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
appropriate factor(s) from the tables provided.) Required: a. Calculate the issue price of the bond assuming a market interest rate of 12.0% on the date of the bond issue. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Part 1 Record the following entries: (Round your intermediate calculations and final answers to the nearest whole dollar.) Issuance of the bonds on October 1, 2023. Adjusting entry to accrue bond interest and discount amortization on November 30, 2023. Payment of interest on October 1, 2024. Part 2 Show how the bond will appear on the balance sheet under non-current liabilities at November 30, 2027. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![On October 1, 2023, Dejour Energy Inc. issued a $697,000, 10.0%, seven-year bond.
Interest is to be paid annually each October 1. Dejour Energy Inc. has a November 30 year -
end. (Use TABLE 14A.1 and TABLE 14A.2.). Note: Use table values for PV calculations. (Use
appropriate factor(s) from the tables provided.) Required: a. Calculate the issue price of the
bond assuming a market interest rate of 12.0% on the date of the bond issue. (Do not round
intermediate calculations. Round the final answers to the nearest whole dollar.) b. Using the
effective interest method, prepare an amortization schedule. (Do not round intermediate
calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as
positive values.) Part 1 Record the following entries: (Round your intermediate calculations
and final answers to the nearest whole dollar.) Issuance of the bonds on October 1, 2023.
Adjusting entry to accrue bond interest and discount amortization on November 30, 2023.
Payment of interest on October 1, 2024. Part 2 Show how the bond will appear on the
balance sheet under non-current liabilities at November 30, 2027. (Do not round
intermediate calculations. Round the final answers to the nearest whole dollar.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fba2f1702-797a-464f-82e3-e28d5edb4912%2Ff924a40e-9c8a-4b8a-8b06-9ade13948002%2Ft5x11jq_processed.png&w=3840&q=75)
Transcribed Image Text:On October 1, 2023, Dejour Energy Inc. issued a $697,000, 10.0%, seven-year bond.
Interest is to be paid annually each October 1. Dejour Energy Inc. has a November 30 year -
end. (Use TABLE 14A.1 and TABLE 14A.2.). Note: Use table values for PV calculations. (Use
appropriate factor(s) from the tables provided.) Required: a. Calculate the issue price of the
bond assuming a market interest rate of 12.0% on the date of the bond issue. (Do not round
intermediate calculations. Round the final answers to the nearest whole dollar.) b. Using the
effective interest method, prepare an amortization schedule. (Do not round intermediate
calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as
positive values.) Part 1 Record the following entries: (Round your intermediate calculations
and final answers to the nearest whole dollar.) Issuance of the bonds on October 1, 2023.
Adjusting entry to accrue bond interest and discount amortization on November 30, 2023.
Payment of interest on October 1, 2024. Part 2 Show how the bond will appear on the
balance sheet under non-current liabilities at November 30, 2027. (Do not round
intermediate calculations. Round the final answers to the nearest whole dollar.)
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