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On June 1, 2020, JetCom Inventors Inc. issued a $610,000 6%, three-year bond. Interest is to be paid semiannually beginning December 1, 2020 Required: a.

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On June 1, 2020, JetCom Inventors Inc. issued a $610,000 6%, 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 7% (Do not round Intermediate calculations. Round the final answer to the nearest whole dollar.) Issue price of the bond $ 593,747 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 Expense Discount Amort. Unamortized Discount Carrying Value $ $ 16,253 13771 593,747 596 229 20,781 2.481 June 1/20 Dec. 1/20 June 1/21 Dec 1/21 18,300 18,3001 18 3001 2.560 1.2001 609.797 20,958 2005 2,658 8,545 601,455 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 os positive values.) Period Ending Cash Interest Paid Period Interest Expense Discount Amort. Unamortized Discount Carrying Value $ 16,253 13.771 18.300 20.781 18.300 20 868 11.203 18 300 June 1/20 Dec. 1/20 June 1/21 Dec. 1121 June 1122 Dec. 1122 June 1/23 Totals 6545 2481 2.568 2.658 2,751 2,847 20.958 21,051 21.147 593,747 596 229 598.797 601,455 604.205 607,053 610,000 18.300 5.795 18.300 2.947 21.247 18,300 109 8005 $ 126.052 6252 Part 1 Prepare journal entries to the following. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar.) Part 1 Prepare journal entries to the following. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) a. Issuance of the bonds on June 1, 2020 b. Payment of interest on December 1, 2020 c. Adjusting entry to accrue bond interest and discount amortization on January 31, 2021 d. Payment of interest on June 1, 2021 Assume JetCom Inventors Inc. has a January 31 year-end. View transaction list Record issued bond at discount. 2 Record payment of interest. Record accrual of interest. Record payment of interest. Credit Part 2 Show how the bonds will appear on the balance sheet under non-current liabilities at January 31, 2022. (Do not round intermediat calculations. Round the final answers to the nearest whole dollar.) Balance Sheet (Partial) Non-current liabilities

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