On June 1, 2020, JetCom Inventors Inc. issued a $500.000 6%, three-year bond. Interest is...
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On June 1, 2020, JetCom Inventors Inc. issued a $500.000 6%, three-year bond. Interest is to be paid semiannually beginning December 1, 2020 Required: a. Calculate the issue price of the bond assuming a market interest rate of 7%. (Do not round Intermediate calculations. Round the final answer to the nearest whole dollar) Issue price of the bond b. Using the effective interest method, prepare an amortization schedule. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Period Ending Cash Interest Pald Period Interest Expense Discount Amort Unamortized Discount Carrying Value June 1/20 Dec, 1/20 June 1/21 Dec. 1/21 June 1/22 Dec. 1/22 June 1/23 Totals S0S0S0 0 Part 1 Prepare journal entries to the following. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar.) a. Issuance of the bonds on June 1, 2020 b. Payment of interest on December 1, 2020 C. Adjusting entry to accrue bond interest and discount amortization on January 31, 2021 d. Payment of interest on June 1, 2021 Assume JetCom Inventors Inc. has a January 31 year-end. View transaction ist Journal entry worksheet
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