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On October 1, 2020, Best Biopharma Inc. issued an $830,000, 9.0%, seven-year bond. Interest is to be paid annually each October 1 Assume a November
On October 1, 2020, Best Biopharma Inc. issued an $830,000, 9.0%, seven-year bond. Interest is to be paid annually each October 1 Assume a November 30 year-end. (Use TABLE 14A1 and TABLE 14A2.) (Use appropriate foctor(s) from the tables provided.) Required: o. Calculate the issue price of the bond assuming a market Interest rate of 70%. (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 os positive values.) Period Ending Cash Interest Paid Period Interest Expense Premium Amort Unamortized Premium Carrying Value Oct 1/20 Oct 1/21 Oct 1/22 Oct 1/23 Oct 1/24 Oct 1/25 Oct. 1/26 Oct 1/27
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