On June 1, 2023, JetCom Inventors Inc. Issued December 1, 2023. Required: a Calculate the issue price of the bond assuming a market interest rate of 11% (Do not round Intermediate calculations. Round the final answer to the nearest whole dollar) Issue price of the bond 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.) Period Ending June 1/23 Dec. 1/23 June 1/24 Dec. 1/24 June 1/25 Dec. 1/25 June 1/26 Totals Cash Interest Paid Discount Period interest Expense Amort Unamortized Discount Carrying Value Part 1 Prepare journal entries to the following. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Subject:

a. Issuance of the bonds on June 1, 2023
b. Payment of Interest on December 1, 2023
c. Adjusting entry to accrue bond interest and discount amortization on January 31, 2024
d. Payment of Interest on June 1, 2024
Assume JetCom Inventors Inc. has a January 31 year-end.
View transaction let
Journal entry worksheet
Record issued bond at discount.
Note: Enter debits before credits.
Date
June 01, 2023
Record entry
General Joumal
Clear entry
Debit
Credit
View general Journal
Part 2
Show how the bonds will appear on the balance sheet under non-current liabilities at January 31, 2025. (Do not round Intermediate
calculations. Round the final answers to the nearest whole dollar)
Transcribed Image Text:a. Issuance of the bonds on June 1, 2023 b. Payment of Interest on December 1, 2023 c. Adjusting entry to accrue bond interest and discount amortization on January 31, 2024 d. Payment of Interest on June 1, 2024 Assume JetCom Inventors Inc. has a January 31 year-end. View transaction let Journal entry worksheet Record issued bond at discount. Note: Enter debits before credits. Date June 01, 2023 Record entry General Joumal Clear entry Debit Credit View general Journal Part 2 Show how the bonds will appear on the balance sheet under non-current liabilities at January 31, 2025. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar)
On June 1, 2023, JetCom Inventors Inc. Issued a $530,000 10 %, three-year bond. Interest is to be paid semiannually beginning
December 1, 2023.
Required:
a Calculate the issue price of the bond assuming a market Interest rate of 11%. (Do not round Intermediate calculations. Round the
final answer to the nearest whole dollar)
Issue price of the bond
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.)
Period
Ending
June 1/23
Dec. 1/23
June 1/24
Dec. 1/24
June 1/25
Dec. 1/25
June 1/26
Totals
Cash
Interest Paid
Period interest
Expense
Discount
Amort
Unamortized Carrying
Discount
Value
Part 1
Prepare journal entries to the following. (Do not round Intermediate calculations. Round the final answers to the nearest whole
dollar)
Transcribed Image Text:On June 1, 2023, JetCom Inventors Inc. Issued a $530,000 10 %, three-year bond. Interest is to be paid semiannually beginning December 1, 2023. Required: a Calculate the issue price of the bond assuming a market Interest rate of 11%. (Do not round Intermediate calculations. Round the final answer to the nearest whole dollar) Issue price of the bond 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.) Period Ending June 1/23 Dec. 1/23 June 1/24 Dec. 1/24 June 1/25 Dec. 1/25 June 1/26 Totals Cash Interest Paid Period interest Expense Discount Amort Unamortized Carrying Discount Value Part 1 Prepare journal entries to the following. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar)
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