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On October 1, 2020, Ross Wind Energy Inc, issued a $1,600,000,12.0%, seven-year bond. Interest is to be paid annually each October 1. Assume a November
On October 1, 2020, Ross Wind Energy Inc, issued a $1,600,000,12.0%, seven-year bond. Interest is to be paid annually each October 1. Assume a November 30 year-end. (Use IABL E 14A. and IABLE 14A2). (Use appropriate foctor(s) from the tables provided.) Required: o. Calculate the issue price of the bond assuming a market interest rate of 10% on the date of the bond issue. (Do not round Intermediate colculotions. Round the final onswer to the nearest whole dollar.) b. Using the effective interest method, prepare an amortization schiedule. (Do not round intermediate calculations: Round the final answers to the neorest whole doliar, Enter all the amounts as positive values.) Port 1 Record the following entries: (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 c. Payment of Interest on October 1, 2021 Journal entry worksheet Pont 2 coniculotions. Mound the final onswers to the nearest whole solloc]
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