Zeenat Home Appliances Company issued 12%, 6 years maturity, 5,000 bonds of Rs. 2,000 each par...

  

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Zeenat Home Appliances Company issued 12%, 6 years maturity, 5,000 bonds of Rs. 2,000 each par value at Rs. 2,100 each as on 01 September, 2020. The interest is payable bi-annually. The financial year closes on 30 June each year. These bonds had call option before maturity, hence as approved by the board of directors of the Company, these bonds were converted into Common Stock of Rs. 100 each par value and upon surrender of all outstanding bonds, the company issued 80,000 common stocks as on 30 June 2022. Required a) b) c) d) e) Record issuance of Bonds. Record payment of interest for first year six months and accrual of interest for 04 months as at 30 June 2021. Record payment of succeeding year's payment of interest and accrual of interest on bonds. Record amortization of premium on bonds till conversion into stocks. Record retirement of bonds premature and conversion into Capital Stock of the Company. Zeenat Home Appliances Company issued 12%, 6 years maturity, 5,000 bonds of Rs. 2,000 each par value at Rs. 2,100 each as on 01 September, 2020. The interest is payable bi-annually. The financial year closes on 30 June each year. These bonds had call option before maturity, hence as approved by the board of directors of the Company, these bonds were converted into Common Stock of Rs. 100 each par value and upon surrender of all outstanding bonds, the company issued 80,000 common stocks as on 30 June 2022. Required a) b) c) d) e) Record issuance of Bonds. Record payment of interest for first year six months and accrual of interest for 04 months as at 30 June 2021. Record payment of succeeding year's payment of interest and accrual of interest on bonds. Record amortization of premium on bonds till conversion into stocks. Record retirement of bonds premature and conversion into Capital Stock of the Company.

Answer rating: 100% (QA)

Answer a Record issuance of Bonds DateParticularsDebitCredit 01 September ... View the full answer