Show how the bonds will appear on the balance sheet

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Reference no: EM132784651

Question - On June 1, 2020, Shebandowan Investors Inc. issued a $4,930,000, 9%, three-year bond. Interest is to be paid semiannually beginning December 1, 2020. Assume that the market rate of interest is 10%.

Required -

Part 1 - Record the following entries: (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 Shebandowan Investors Inc. has a January 31 year-end.

Part 2 - Show how the bonds will appear on the balance sheet under non-current liabilities at January 31, 2022.

Reference no: EM132784651

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