P10-7 Recording Bond Issuance, Interest Expense, and Effects of Bond Redemption of Financial Statements (Effective-Interest Method) (AP10-5) Nguyen Corporation issued a $8,000,000, 6 percent bond on August 1, 2017. The market interest rate was 7 percent on that date and the bond matures in eight years. Interest on these bonds is payable annually on August 1. The company uses the effective interest method and its fiscal year ends on November 30. Required: 1. Compute the issue price of the bond on August 1, 2017. 2. Prepare the journa l entries on November 30, 2017, and on August 1, 2018, to record interest expense. 3. Ass ume that the company redeems 40 percent of the original bond at 103 on August 1, 2018, after the payment of interest. Show statement of financial position as at August the accounts and amounts that the company should report on its 1, 2018, after the redemption of the bonds