On November 1, 2014 Nordin Inc. (Nordin) issued a

$24,000,000 bond with a 4 percent coupon rate and a maturity date of October 31, 2021. Interest is paid annually on October 31. The effective interest rate for a bond of this type on November 1, 2014 was 3.5 percent. Nordin’s year-end is October 31.

Required:

a. What will be the proceeds from the bond issue?

b. Prepare the journal entry to record the issue of the bond on November 1, 2014.

c. Prepare an amortization schedule using the straight-line method for any premium or discount that arose on issue of the bond.

d. Prepare the journal entry required to record the interest expense on October 31, 2015, 2017, and 2019.

e. Prepare the journal entry required to record the retirement of the bond on maturity.