Reference no: EM131795597
Assignment
On November 1, 2017, Nordin Inc. (Nordin) issued a $5,000,000 bond with a 6 percent coupon rate and a maturity date of October 31, 2022. Interest is paid semi-annually on April 30 and October 31. The effective interest rate for a bond of this type on November 1, 2017 was 8 percent. Nordin's year-end is October 31.
Required:
a. What will the proceeds from the bond issue be? (Round your answer to the nearest whole dollar amount.)
b. Prepare the journal entry to record the issue of the bond on November 1, 2017. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar amount.)
c. Prepare an amortization schedule using the effective interest rate method for any premium or discount that arose on issue of the bond. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount.)
d. Prepare the journal entry required to record the interest expense on April 30 and October 31, 2018 and 2020. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations and round your final answers to nearest whole dollar amount.)
e. Prepare the journal entry required to record the retirement of the bond on maturity. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.Round your answer to the nearest whole dollar amount.)
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