Question
On June 1, 2020, JetCom Inventors Inc. issued a $570,000 9%, three-year bond. Interest is to be paid semiannually beginning December 1, 2020. Required:
On June 1, 2020, JetCom Inventors Inc. issued a $570,000 9%, three-year bond. Interest is to be paid semiannually beginning December 1, 2020. Required: a. Calculate the issue price of the bond assuming a market interest rate of 10%. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Issue price of the bond b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Period Ending Cash Interest Paid Period Interest Discount Expense Amort. Unamortized Discount Carrying Value June 1/20 Dec. 1/20 June 1/21 Dec 1/21
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