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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 9ca. Toble 9C 2 Required: 1. Compute the issue price of the bond on August 1 year 1. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar) Bondue price 2. Prepare the journal entries on November 30. year 1, and on August 1 year 2 to record interest expense. The company uses a discount or premium account (If 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 transaction Journal entry worksheet 1 2 Record the accrual of Interest or bonds 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 abilities 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 Earnings Non-operating activities Statement of Cash Flows Operating activities Netcomings Add/Deduct items not affecting cash $ Financing activities Redemption of bond payable

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