Question: Question 3 (15 Marks) Part A (7 Marks) On 1 July 2019, Fancy Ltd raised debt finance via an issue of 1000 five-year bonds at

Question 3 (15 Marks) Part A (7 Marks) On 1 July

Question 3 (15 Marks) Part A (7 Marks) On 1 July 2019, Fancy Ltd raised debt finance via an issue of 1000 five-year bonds at $1000 each with a coupon interest rate of 6 per cent per annum, payable annually in arrears. At the time of the bond issued, the market interest rate for equivalent risk bonds was 10 per cent. Required: a) Calculate the issue price of the bond issue. (1.5 Marks) b) Calculate the amortised cost of the bonds payable account as at 30 June 2020 to 30 June 2024. (2.5 Marks) c) Prepare the journal entries to issue the coupon bonds on 1 July 2019 and the entries on 30 June 2020 and 30 June 2021 to record the interest paid

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