please answer last subpart only On October 31, 2021, Flowing Wind Company issued a $3,500,000, 10-year bond at7% when the market rate was 8%. It was sold at 93, and they will account for intereston the bond using the effective interest rate calculation method. Interest paymentsare made on April 30, and October 31 of each year. Party Décor Company's year-endis December 31.Required:1) Prepare the appropriate journal entries related to this bond for 2021, including allcalculation2) Show the bonds payable net value reported on the balance sheet as of December31, 20213) Prepare the journal entry related to the first interest payment in 2022, includingall calculations.4) Assume the bond is redeemed at 94 on May 1, 2022. Record the redemption ofthe bond with the calculations included

Issue price of bonds 3255000 =3500000*0.93 Discount on issue 245000 =3500000-3255000…

Answered: 4) Assume the bond is redeemed at 94 on…

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Accounting

4) Assume the bond is redeemed at 94 on May 1, 2022. Record the redemption of the bond with the calculations included

Principles of Accounting Volume 1

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ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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Question

please answer last subpart only

On October 31, 2021, Flowing Wind Company issued a $3,500,000, 10-year bond at
7% when the market rate was 8%. It was sold at 93, and they will account for interest
on the bond using the effective interest rate calculation method. Interest payments
are made on April 30, and October 31 of each year. Party Décor Company's year-end
is December 31.
Required:
1) Prepare the appropriate journal entries related to this bond for 2021, including all
calculation
2) Show the bonds payable net value reported on the balance sheet as of December
31, 2021
3) Prepare the journal entry related to the first interest payment in 2022, including
all calculations.
4) Assume the bond is redeemed at 94 on May 1, 2022. Record the redemption of
the bond with the calculations included

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