Question: Please answer these 2 questions with step by step explanation. Thank you in advance 1.On January 1, 2012, AAA company issued $5,000,000, 9% (stated interest

Please answer these 2 questions with step by step explanation. Thank you in advance

1.On January 1, 2012, AAA company issued $5,000,000, 9% (stated interest rate) bonds for cash $4,695,000. The market interest rate is 10%. Interest is payable annually on December 31. AAA uses the effectiveinterest method of amortizing bond discount.

UnderIFRS,what is correct for the journal entry on January 1, 2012?

2.On January 1, 2012, AAA company issued $5,000,000, 9% (stated interest rate) bonds for cash $4,695,000. The market interest rate is 10%. Interest is payable annually on December 31. AAA uses the effectiveinterest method of amortizing bond discount.

What statements are correct regarding the effect of the journal entry on January 1, 2012?

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