Subhan Mobiles Trading Company is intending to establish a mobiles repair work shop for which it...
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Subhan Mobiles Trading Company is intending to establish a mobiles repair work shop for which it needs funds amounting to Rs. 2.000 million for purchase of some tools; jigs spare parts and installation of repair panel. These funds are needed for about 04 years. Accordingly the Company issued 2,000 Bonds of Rs. 1,000 each on 01 July, 2020 at 4% discount. The bonds carry interest of 08% per annum payable semiannually. Required a) Record the issuance of bonds. b) c) Interest payment at each 6 months period. Amortization of bonds discount at each interest payment under straight line method. d) Retirement of Bonds at maturity. e) Compute effective rate of interest on these bonds. Subhan Mobiles Trading Company is intending to establish a mobiles repair work shop for which it needs funds amounting to Rs. 2.000 million for purchase of some tools; jigs spare parts and installation of repair panel. These funds are needed for about 04 years. Accordingly the Company issued 2,000 Bonds of Rs. 1,000 each on 01 July, 2020 at 4% discount. The bonds carry interest of 08% per annum payable semiannually. Required a) Record the issuance of bonds. b) c) Interest payment at each 6 months period. Amortization of bonds discount at each interest payment under straight line method. d) Retirement of Bonds at maturity. e) Compute effective rate of interest on these bonds.
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a Record the issuance of bonds ANSWER Subhan Mobiles Trading Company Bond Issuance Date 01 July 2020 Amount Rs 2000000 Terms 4 discount 8 interest per ... View the full answer
Related Book For
Statistics for Management and Economics Abbreviated
ISBN: 978-1285869643
10th Edition
Authors: Gerald Keller
Posted Date:
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