On February 1, 2017, Jura Corp. (Jura) issued an $8,000,000 bond with a 7 percent coupon rate

Question:

On February 1, 2017, Jura Corp. (Jura) issued an $8,000,000 bond with a 7 percent rate and a date of January 31, 2023. Interest is paid annually on January 31. The effective interest rate for a bond of this type on February 1, 2017 was 7 percent. Jura's year-end is January 31.

Required:
a. What will the proceeds from the bond issue be?
b. Prepare the journal entry to record the issue of the bond on February 1, 2017.
c. Prepare an amortization schedule using the effective interest rate method for any premium or discount that arose on issue of the bond.
d. Prepare the journal entry required to record the interest expense on January 31, 2018, 2020, and 2022.
e. Prepare the journal entry required to record the retirement of the bond on Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...