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On October 1, 2023, Ross Wind Energy Inc. issued a $1,690,000, 11.0%, seven-year bond. Interest is to be paid annually each October 1. Assume a November 30 year-end. (Use appropriate factor(s) from the tables provided.) Required: a. Calculate the issue price of the bond assuming a market interest rate of 10% on the date of the bond issue. (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 Cash Interest Period Interest Ending Premium Amort Unamortized Premium Carrying Value Paid Expense Oct. 1/23 Oct. 1/24 Oct. 1/25 Oct. 1/26 Oct. 1/27 Oct. 1/28 Oct. 1/29 Oct. 1/30 Totals +

On October 1, 2023, Ross Wind Energy Inc. issued a $1,690,000, 11.0%, seven-year bond. Interest is to be paid annually each October 1. Assume a November 30 year-end. (Use appropriate factor(s) from the tables provided.) Required: a. Calculate the issue price of the bond assuming a market interest rate of 10% on the date of the bond issue. (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 Cash Interest Period Interest Ending Premium Amort Unamortized Premium Carrying Value Paid Expense Oct. 1/23 Oct. 1/24 Oct. 1/25 Oct. 1/26 Oct. 1/27 Oct. 1/28 Oct. 1/29 Oct. 1/30 Totals +

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On October 1, 2023, Ross Wind Energy Inc. issued a $1,690,000, 11.0%, seven-year bond. Interest is to be paid annually each October 1. Assume a November 30 year-end. (Use appropriate factor(s) from the tables provided.) Required: a. Calculate the issue price of the bond assuming a market interest rate of 10% on the date of the bond issue. (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 Cash Interest Paid Period Interest Expense Premium Amort. Unamortized Premium Carrying Value Oct. 1/23 Oct. 1/24 Oct. 1/25 Oct. 1/26 Oct. 1/27 $ Oct. 1/28 Oct. 1/29 Oct. 1/30 Totals
Transcribed Image Text:On October 1, 2023, Ross Wind Energy Inc. issued a $1,690,000, 11.0%, seven-year bond. Interest is to be paid annually each October 1. Assume a November 30 year-end. (Use appropriate factor(s) from the tables provided.) Required: a. Calculate the issue price of the bond assuming a market interest rate of 10% on the date of the bond issue. (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 Cash Interest Paid Period Interest Expense Premium Amort. Unamortized Premium Carrying Value Oct. 1/23 Oct. 1/24 Oct. 1/25 Oct. 1/26 Oct. 1/27 $ Oct. 1/28 Oct. 1/29 Oct. 1/30 Totals
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