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Un Uctober 31,2021 , Flowing Wind Company issued a $3,500,000,10-year bond at 7% when the market rate was 8%. It was sold at 93 ,
Un Uctober 31,2021 , Flowing Wind Company issued a $3,500,000,10-year bond at 7% when the market rate was 8%. It was sold at 93 , and they will account for interest on the bond using the effective interest rate calculation method. Interest payments are made on April 30, and October 31 of each year. Party Dcor Company's year-end is December 31. Required: 1) Prepare the appropriate journal entries related to this bond for 2021 , including all calculations. (5 marks) 2) Show the bonds payable net value reported on the balance sheet as of December 31, 2021. (1 mark) 3) Prepare the journal entry related to the first interest payment in 2022, including all calculations. (3 marks) 4) Assume the bond is redeemed at 94 on May 1, 2022. Record the redemption of the bond with the ralrulatinne incluided 12 markel
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