On 1 July 2022, Kelly Ltd issued five-year bonds with a total face value of $1 000
Question:
On 1 July 2022, Kelly Ltd issued five-year bonds with a total face value of $1 000 000 and which paid interest of $100 000 annually in arrears. The market-required interest rate for Kelly Ltd’s bonds was 14 percent.
REQUIRED
Prepare the journal entry to issue the bonds at 1 July 2022, and the entry at 30 June 2023 to record the interest paid
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