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Nguyen Corporation issued a $8,000,000, 6 percent bond on August 1 year 1. The market interest rate was 7 percent on that date and the

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Nguyen Corporation issued a $8,000,000, 6 percent bond on August 1 year 1. The market interest rate was 7 percent on that date and the bond matures in eight years. Interest on these bonds is payable annually on August 1 The company uses the effective-interest method and its fiscal year ends on November 30. Use Table 9C1, Table 9C2 Required: 1. Compute the issue price of the bond on August year. (Do not round Intermediate calculations, Round the final answer to the nearest whole dollar Bandos prio 2. Prepare the journal entries on November 30, year, and on August 1 year 2, to record interest expense. The company uses a discount or premium account no entry is required for a transaction event select "No journal entry required in the first account field. Do not round Intermediate calculations. Round the final answers to the nearest whole dollar) View att Journal entry worksheet 1 2 > Record the accrual or interest on bonds mer Da DE 10. Yes 3. Assume that the company redeems 30 percent of the original bond at 102 on August 1, year 2, after the payment of interest. Show the accounts and amounts that the company should report on its statement of financial position as at August 1 year 2, after the redemption of the bonds. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar) NGUYEN CORPORATION As of August 1 Year 2 Non-current liabilities: Bond payable carrying amount 4. How would the effect of the redemption transaction be reported on the statement of earnings and the statement of cash flows for the year ending November 30, year 2? The company uses the Indirect method to prepare the operating section of the statement of cash flows. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar) NGUYEN CORPORATION Financial Statements As of year November 30, Year 2 Statement of Earrings Non operating activities Gement of Cash Flow Operating active Naming Add Deductam not affecting cash $ 0 Radomotion of bond payti

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