On October $1,2023,$ Best Biopharma Inc. issued an $$770,000,9\mathrm{.}0\%,$ seven$-$year bond. Interest is to be paid annually each October $1.$ Assume a November $30$ year$-$end. $($Use TABLE $14$A$\mathrm{.}1$ and TABLE $14$A$\mathrm{.}2.)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

a$.$ Calculate the issue price of the bond assuming a market interest rate of $7\mathrm{.}0\%.($Do not round intermediate calculations. Round the final answer to the nearest whole dollar.$)$

b$.$ Prepare an amortization schedule using the effective interest method. $($Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.$)$ Part $1$

Record the following entries: $($Do not round intermediate calculations. Round the final answers to the nearest whole dollar.$)$

Issuance of the bonds on October $1,2023$

Adjusting entry to accrue bond interest and premium amortization on November $30,2023$

Payment of interest on October $1,2024$ Part $2$

Show how the bond will appear on the balance sheet under non$-$current liabilities at November $30,2028.($Do not round intermediate calculations. Round the final answers to the nearest whole dollar.$)$

On October $1,2023,$ Best Biopharma Inc. issued an $$770,000,9\mathrm{.}0\%,$ seven$-$year bond. Interest is to be paid annually each October $1.$ Assume a November $30$ year$-$end. $($Use TABLE $14$A$\mathrm{.}1$ and TABLE $14$A$\mathrm{.}2.)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

a$.$ Calculate the issue price of the bond assuming a market interest rate of $7\mathrm{.}0\%.($Do not round intermediate calculations. Round the final answer to the nearest whole dollar.$)$

Issue price of the bond

b$.$ Prepare an amortization schedule using the effective interest method. $($Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.$)$

$\backslash$table$[[\backslash$table$[[$Period$],[$Ending$]],\backslash$table$[[$Cash$],[$Interest$],[$Paid$]],\backslash$table$[[$Period$],[$Interest$],[$Expense$]],\backslash$table$[[$Premium$],[$Amort$.]],\backslash$table$[[$Unamortized$],[$Premium$]],\backslash$table$[[$Carrying$],[$Value$]]],[$Oct$.\frac{1}{23},,,,,],[$Oct$.\frac{1}{24},,,,,],[$Oct$.\frac{1}{25},,,,,],[$Oct$.\frac{1}{26},,,,,],[$Oct$.\frac{1}{27},,,,,],[$Oct$.\frac{1}{28},,,,,],[$Oct$.\frac{1}{29},,,,,]]$

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Part $1$

Record the following entries: $($Do not round intermediate calculations. Round the final answers to the nearest whole dollar.$)$

a$.$ Issuance of the bonds on October $1,2023$

b$.$ Adjusting entry to accrue bond interest and premium amortization on November $30,2023$

c$.$ Payment of interest on October $1,2024$

Journal entry worksheet

$1$

$2$

$3$

Record the issuance of bond at premium.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$October $01,2023],[,,,],[,,,],[,,,],[,,,],[,,,]]$

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