On October 1, 2023, Dejour Energy Inc. issued a $697,000, 10.0%, seven-year bond.Interest is to be paid annually each October 1. Dejour Energy Inc. has a November 30 year -end. (Use TABLE 14A.1 and TABLE 14A.2.). Note: Use table values for PV calculations. (Useappropriate factor(s) from the tables provided.) Required: a. Calculate the issue price of thebond assuming a market interest rate of 12.0% on the date of the bond issue. (Do not roundintermediate calculations. Round the final answers to the nearest whole dollar.) b. Using theeffective interest method, prepare an amortization schedule. (Do not round intermediatecalculations. Round the final answers to the nearest whole dollar. Enter all the amounts aspositive values.) Part 1 Record the following entries: (Round your intermediate calculationsand final answers to the nearest whole dollar.) Issuance of the bonds on October 1, 2023.Adjusting entry to accrue bond interest and discount amortization on November 30, 2023.Payment of interest on October 1, 2024. Part 2 Show how the bond will appear on thebalance sheet under non-current liabilities at November 30, 2027. (Do not roundintermediate calculations. Round the final answers to the nearest whole dollar.)

A bond is an instrument that is a type of loan given by an investor to a borrower. It gives a fixed…

Answered: appropriate factor(s) from the tables…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information [The following information applies to the questions displayed below.] On January 1, 2021, Splash City issues $360,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $335,539. Required: 1. Complete the first three rows of an amortization table. (Round your intermediate and final answers to the nearest whole dollar.) Change in Carrying Value Carrying Value Interest Date Cash Paid Expense 1/1/21 $ 335,539 6/30/21 12/31/21
Required information [The following information applies to the questions displayed below.] On January 1, 2024, White Water issues $530,000 of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 5%, the bonds will issue at $596,522. Required: 1. Complete the first three rows of an amortization schedule. (Round your final answers to the nearest whole dollar.) Date 01/01/2024 06/30/2024 12/31/2024 Cash Paid Interest Expense Change in Carrying Value Carrying Value
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[The following information applies to the questions displayed below.] On January 1, 2021, Splash City issues $450,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.Assuming the market interest rate on the issue date is 6%, the bonds will issue at $483,476. Required: 1. Complete the first three rows of an amortization table for 1/1/21, 6/30/21, 12/31/21
On January 1, 2021, Splash City issues $500,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 10% and the bonds issued at $457,102. Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $458,633 on December 31, 2022. 2. If the market interest rate drops to 7% on December 31, 2022, it will cost $601,452 to retire the bonds. Record the retirement of the bonds on December 31, 2022.

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