On October 1, 2023, Dejour Energy Inc. issued a $685,000,9.5%, seven-year bond. Interest is to...

80.2K

Verified Solution

Question

Accounting

imageimageimage

imageimage

On October 1, 2023, Dejour Energy Inc. issued a $685,000,9.5%, 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. (Use approprlate factor(s) from the tables provlded.) Required: a. Calculate the issue price of the bond assuming a market interest rate of 10.0% on the date of the bond issue. (Do not round Intermedlate calculatlons. Round the final answers to the nearest whole dollar.) b. Using the effective interest method, prepare an amortization schedule. (Do not round Intermedlate caleulations. Round the flnal answers to the nearest whole doller. Enter oll the amounts as positive velues.) Pert 1 Record the following entries: (Round your intermedlate calculetions and finol answers to the nearest whole doller.) a. Issuance of the bonds on October 1,2023 . b. Adjusting entry to accrue bond interest and discount amortization on November 30,2023 . c. Payment of interest on October 1,2024 . Note: Enter debits before credits. Pert 2 Show how the bond will appear on the balance sheet under non-current liabilities at November 30,2027 . (Do not round intermedlete celeulations. Round the final answers to the nearest whole doller.) TABLE 14A.1 Drocnnt lalin of 1 Nin in n Darinde TABLE 14A.2 Drocant Valo of an Annulty of 1 Darind

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students