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On May 1, 2017, Novak Ltd. issued a series of bonds in order to raise money for some upcoming projects. The bonds had a face
On May 1, 2017, Novak Ltd. issued a series of bonds in order to raise money for some upcoming projects. The bonds had a face value of $5,680,000 and matured in 10 years. Interest was payable at a face rate of 5% each April 30 and October 31 . The bonds were issuer to yield 5.5% Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Calculate the issue price of the bonds. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Issue Price $ Prepare a bond discount/premium amortization table. (Round answers to 0 decimal places, e.g. 5,275. In the years that followed, Novak encountered a number of highly profitable years, resulting in a surplus of cash. On August 1 , 2022 , the company repurchased and retired the entire bond issue at 113 , plus accrued interest. Calculate the amount of the gain or loss on early redemption of the bonds. (Round answer to 0 decimal places, e.g. 5,275.) on early redemption of bonds: Prepare a journal entry to accrue interest to the date of the redemption and the journal entry to record the redemption of the bonds plus accrued interest on August 1,2022. (Round answer to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
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