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On July 1st, 2022, Valleyview Inc. issues a $1,000,0004-year 5% bond. The market rate of interest is 4%. The bond's present value is 1,036,627 and
On July 1st, 2022, Valleyview Inc. issues a $1,000,0004-year 5% bond. The market rate of interest is 4%. The bond's present value is 1,036,627 and it pays interest semi-annually on January 1tt and July 1tt. The company's fiscal year-end is October 31. Required: a) Prepare a complete bond amortization schedule i.e., from the issuance of bond to its maturity. b) Record the journal entry required on: 1. Issuance of bond (July 1,2022 ) II. The company's fiscal year-end (October 31, 2022). III. The first interest payment (January 1,2023 ) IV. The maturity (July 1,2026 ). Provide both interest and maturity entries
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