Transcribed image text: SenjaKala Bhd is an investment holding company that involves in property and township development,
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Transcribed image text: SenjaKala Bhd is an investment holding company that involves in property and township development, construction, road building and maintenance, tourism, leisure, and hospitality. In 2020, the company issued new bonds, Anugerah Bond and Kurnia Bond to raise the capital. On 1 April 2020, the company issued Anugerah Bond, 12% RM500.000 dated 1 January 2020 to yield 10% interest at the price of RM523,516. The bond matures in 3 years and the interest payments are made semi-annually, 1 July and 1 January each year. On 1 July 2020, the company issued Kurnia Bond with a par value of RM1,000,000, which mature in five years. The coupon rate is 6% with an effective yield of 8%. The interest is payable annually on 30 June. The company uses the effective interest method to amortize bond premium or discount. The financial year end of the company is on 31 December.
REQUIRED:
(Round your answer to the nearest RM)
(a) Prepare a bond amortisation schedule for Anugerah Bond up to 1 July 2021.
(b) Calculate the selling price of the Kurnia Bond on 1 July 2020.
(c) Prepare all related journal entries for SenjaKala Bhd for the financial year ended 31 December 2020.
Related Book For
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold
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