On October 1, 2020, Dejour Energy Inc. issued a $680,000, 7%, seven-year bond. Interest is to be

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On October 1, 2020, Dejour Energy Inc. issued a $680,000, 7%, seven-year bond. Interest is to be paid annually each October 1.

Required

a. Calculate the issue price of the bond assuming a market interest rate of 8% on the date of the bond issue.

b. Using the effective interest method, prepare an amortization schedule similar to Exhibit 14.10.

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Fundamental Accounting Principles Volume II

ISBN: 978-1260305838

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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Question Posted: Dec 18, 2019 05:45 AM

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On October 1, 2020, Dejour Energy Inc. issued a $680,000, 7%, seven-year bond. Interest is to be

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a PV of face amount Table 14A1 680000 5835 396780 PV of interest annuity Table 14A2 47600 52064 2478...View the full answer

Fundamental Accounting Principles Volume II

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