QUESTION TWO

A$.$ Explain main features of bonds $(7$ Marks$)$

B$.$ On $01$ March $2019,$ Bogota Limited issued $$75,000$ of $12\%,$ Five year bonds at $110.$ The bonds were dated March $12019,$ and interest is payable on $01$ March and $01$ September. Bogota records amortisation using the straight line method. Bogota's Financial year ends on $31$ December.

Required:

Provide all necessary journal entries on each of the following dates;

a$)01$ March $2019(2$ Marks$)$

b$)01$ September $2019(2$ Marks$)$

c$)31$ December $2019(2$ Marks$)$

d$)01$ March $2024(2$ Marks$)$