Nguyen Corporation issued a $8,500,000, 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.

3. Assume that the company redeems 40 percent of the orlginal bond at 104 on August 1 , year 2 after the payment of Interest. Show the accounts and amounts that the company should report on its statement of financlal 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.) 4. How would the effect of the redemption transaction be reported on the statement of eamings and the statement of cash flows for the year ending November 30, year 2 ? The company uses the Indirect method to prepare the operating sectlon of the statement of cash flows. (Do not round Intermedlate calculations. Round the final answers to the nearest whole dollar.) 3. Assume that the company redeems 40 percent of the orlginal bond at 104 on August 1 , year 2 after the payment of Interest. Show the accounts and amounts that the company should report on its statement of financlal 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.) 4. How would the effect of the redemption transaction be reported on the statement of eamings and the statement of cash flows for the year ending November 30, year 2 ? The company uses the Indirect method to prepare the operating sectlon of the statement of cash flows. (Do not round Intermedlate calculations. Round the final answers to the nearest whole dollar.)