To provide funding for its Accounting Lovers Center for the development of financial statement understanding project, Harris Incorporated issued 5% bonds with a face amount of $750,000 on September 1, 2021. At the time of issuance, the market rate of interest was 7%.

The bonds pay interest semiannually on February 28th and August 31st and mature in 5 years.

The fiscal year ends October 31st for Harris Development.

Required: 1. Calculate the selling price of the bonds and prepare an amortization schedule through 8/31/26 (when the bonds mature). Note: You can use excel to prepare the amortization schedule.

Record any necessary journal entries on: September 1, 2021

October 31, 2021

February 28, 2022

August 31, 2022

October 31, 2022

February 28, 2023

2. What amount of interest expense related to the bonds will Harris report in its income statement for the year ending October 31, 2021?

3. What amount(s) related to the bonds will Harris report in its balance sheet on October 31, 2021?

4. What amount of interest expense related to the bonds will Harris report in its income statement for the year ending October 31, 2022?

5. What amount(s) related to the bonds will Harris report in its balance sheet on October 31, 2022?

To provide funding for its Accounting Lovers' Center for the development of financial statement understanding project, Harris Incorporated issued 5% bonds with a face amount of $750,000 on September 1, 2021. At the time of issuance, the market rate of interest was 7%. The bonds pay interest semiannually on February 28th and August 31st and mature in 5 years. The fiscal year ends October 31st for Harris Development. Required: 1. Calculate the selling price of the bonds and prepare an amortization schedule through 8/31/26 (when the bonds mature). Note: You can use excel to prepare the amortization schedule. Record any necessary journal entries on: September 1, 2021 October 31, 2021 February 28, 2022 August 31, 2022 October 31, 2022 February 28, 2023 2. What amount of interest expense related to the bonds will Harris report in its income statement for the year ending October 31, 2021? 3. What amount(s) related to the bonds will Harris report in its balance sheet on October 31, 2021? 4. What amount of interest expense related to the bonds will Harris report in its income statement for the year ending October 31, 2022? 5. What amount(s) related to the bonds will Harris report in its balance sheet on October 31, 2022