Refer to the amortization schedule prepared in Problem 14-3A. Assume JetCom Inventors Inc. has a January 31

Question:

Refer to the amortization schedule prepared in Problem 14-3A. Assume JetCom Inventors Inc. has a January 31 year-end.

Required

Part 1

Record the following entries:

a. Issuance of the bonds on June 1, 2020

b. Payment of interest on December 1, 2020

c. Adjusting entry to accrue bond interest and discount amortization on January 31, 2021

d. Payment of interest on June 1, 2021

Part 2

Show how the bonds will appear on the balance sheet under non-current liabilities at January 31, 2022.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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