Question
On june1, 2020 Jetcom inventors Inc. issued a $440,000 12%, three year bond. Interest is to be paid semiannually beginning December 1, 2020. Required: a.
On june1, 2020 Jetcom inventors Inc. issued a $440,000 12%, 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 13%. b. Using the effective interest method, Prepare an amortization schedule.
part 1 Prepare journal entries to the following a. Issuance of the bonds on January 1, 2020 b. Payment of interest on December 1, 2020 c. Adjusting entry to accrue bond interest and discount amortization on January 31, 2020 Assume Jetcom Inventors Inc. has a January 31 year end
part 2 Show how the bonds will appear on the balance sheet under non- current liabilities at January 31, 2022
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