Question: Answer as soon as possible please! :) I'll give good feedback Vancouver Ltd. has a number of commercial greenhouse operations in British Columbia's province. To
Answer as soon as possible please! :) I'll give good feedback

Vancouver Ltd. has a number of commercial greenhouse operations in British Columbia's province. To finance the additional real estate necessary to meet the increasing demand for the company's products, the company decided to issue bonds. On January 1, it issued 20- year, semi-annual bonds with a face value of $100 million. The contract rate on the bonds was 6% and the bonds were issued at 94.448 to yield 65%. Interest payments are to be made each June 30 and December 31. Required: 1. Were the bonds issued at par, a discount or a premium? How do you know? (No calculation is needed to answer this part) 2. Determine the proceeds on issuance of the bonds and prepare the journal entry to record the bonds' sale on January 1. 3. Provide the joumal entries to record the first two interest payments. 4. What amount will be reported for the bond liability on the company's statement of financial position at December 31 of the first year
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
