Question

On September 1, 2017, Yone Ltd. issued a $2,000,000 bond with a 9 percent coupon rate and a maturity date of August 31, 2023. Interest is paid annually on August 31. The effective interest rate for a bond of this type on
September 1, 2017 was 7 percent. Yone's year-end is August 31.

Required:
a. What will be the proceeds from the bond issue?
b. Prepare the journal entry to record the issue of the bond on September 1, 2017.
c. Prepare an amortization schedule using the effective interest rate method for any premium or discount that arose on issue of the bond.
d. Prepare the journal entry required to record the interest expense on August 31, 2018, 2019, and 2022.
e. Prepare the journal entry required to record the retirement of the bond on maturity.




$1.99
Sales0
Views75
Comments0
  • CreatedFebruary 26, 2015
  • Files Included
Post your question
5000