Nguyen Corporation issued a $9,000,000, 6 percent bond on August 1, 2017 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 9C 1, Table 9C 2 Required 1 Compute the issue price of the bond on August 1, 2017 (Do not round intermediate calculations Round the final answer to the nearest whole dollar ) 2 Prepare the journal entries on November 30, 2017, and on August 1, 2018, to record interest expense (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 ) 3 Assume that the company redeems 35 percent of the original bond at 103 on August 1, 2018, after the payment of interest Compute the accounts and amounts that the company should report on its statement of financial position as at August 1, 2018, 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 earnings and the statement of cash flows for the year ending November 30, 2018 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 ) Journal entry worksheet 1 Record the accrual of interest on bonds Note Enter debits before credits Date General Journal Debit Credit November 30, 2017 Record entry Clear entry View general journal Journal entry worksheet 1 Record the accrual of interest on bonds Note Enter debits before credits Date General Journal Debit Credit November 30, 2017 Record entry Clear entry View general journal Journal entry worksheet 1 Record the accrual of interest on bonds Note Enter debits before credits Date General Journal Debit Credit November 30, 2017 Record entry Clear entry View general journal

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Nguyen Corporation issued a $9,000,000, 6 percent bond on August 1, 2017. The market interest rate was 7 percent on that date and the bond

Nguyen Corporation issued a $9,000,000, 6 percent bond on August 1, 2017. 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 9C.1, Table 9C.2

Required:
1.	Compute the issue price of the bond on August 1, 2017. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.)

Prepare the journal entries on November 30, 2017, and on August 1, 2018, to record interest expense. (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.)

Journal entry worksheet < 1 2 > Record the accrual of interest on bonds. Note: Enter debits before credits. Date General Jour

Journal entry worksheet < 1 2 Record the payment of annual interest on bond payable. Note: Enter debits before credits. Date

3.	Assume that the company redeems 35 percent of the original bond at 103 on August 1, 2018, after the payment of interest. Compute the accounts and amounts that the company should report on its statement of financial position as at August 1, 2018, after the redemption of the bonds. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)

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, 2018? 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.)