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Can I have some help with this question please? On October 1, 2020, Best Biopharma Inc. issued an $870,000, 7.0%, seven-year bond. Interest is to
Can I have some help with this question please?
On October 1, 2020, Best Biopharma Inc. issued an $870,000, 7.0%, seven-year bond. Interest is to be paid annually each October 1. Assume a November 30 year-end. (Use TABLE 14A.1 and TABLE 14A.2.) (Use appropriate factor(s) from the tables provided.) Required: a. Calculate the issue price of the bond assuming a market interest rate of 5.0%. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Issue price of the bond b. Prepare an amortization schedule using the effective interest method. (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. 1/20 Oct. 1/21 Oct. 1/22 Oct. 1/23 Oct. 1/24 Oct. 1/25 Oct. 1/26 Oct. 1/27 Totals 0 0 S 0 $ 0 Part 1 Record the following entries: (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) a. Issuance of the bonds on October 1, 2020 b. Adjusting entry to accrue bond interest and premium amortization November 30, 2020 c. Payment of interest on October 1, 2021Step by Step Solution
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