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On October 1, 2020, Best Biopharma Inc. issued an $760,000. 8.0%, seven year bond. Interest is to be paid annually each Odober Assume a November
On October 1, 2020, Best Biopharma Inc. issued an $760,000. 8.0%, seven year bond. Interest is to be paid annually each Odober Assume a November 30 year-end (Use TABLE 14A1 and TABLE MA2 (Use appropriate factors) from the tables provided) Required: a Calculate the issue price of the bond assuming a market Interest rate of 6.0%. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar) of the bond 700.000 1 b. Prepare an amortization schedule using the effective interest method. (Do not round intermediate calculation, Round the final answers to the nearest whole dollar. Enter all the amounts os positive values. 5 Period Ending Oct 1/20 Od 1/21 Oct 1/22 Oct 123 Oct 1/24 Oct 1/25 Cash Period Premium Unamortized interest Interest Carrying Amort Premium Value Expense Pald ors ors os os 70 000 60.800 45.601 15.100 50 800 60 800 50.800 60,800 FTP VEREN Stine 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, 2020 b. Adjusting entry to accrue bond interest and premium amortization on November 30, 2020 Payment of interest on October 1, 2021 View transaction list Journal entry worksheet 1 2 3 > Record the issuance of bond at premium. Note: Enter debits before credits General Journal Debit Credit Date October 01, 2020 Part 2 Show how the bond will appear on the balance sheet under non-current abilities at November 30, 2025. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar) Balance sheet (Partial) Non current liabilities 5 0
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