On 1/6/2017, EB issued a subscription bond worth 400,000 dinars at an interest rate of 8% annually,
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Question:
On 1/6/2017, EB issued a subscription bond worth 400,000 dinars at an interest rate of 8% annually, and for a period of 10 years (that is, the bond is returned after this period), while the market interest rate on the date of issuance was 10%. This interest is paid annually on 31/5/ of each year. The company also uses the real interest method to amortize the issue difference.
Required: Prepare journal entries to record each of the following:
(a) Issuance of bonds.
(B) Interest is paid and accrued for the first four years.
(c) Amortization schedule.
(D) Proof of entries in the investor's books until May 31, 2018.
Related Book For
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1111534912
8th edition
Authors: Gary A. Porter, Curtis L. Norton
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