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Zho Company issues HK$5 million, 10-year, 9% bonds at 96, with interest payable on July 1 and January 1. The

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Zho Company issues HK$5 million, 10-year, 9% bonds at 96, with interest payable on July 1 and January 1. The straight-line method is used to amortize bond discount.
(a) Prepare the journal entry to record the sale of these bonds on January 1, 2011.
(b) Prepare the journal entry to record interest expense and bond discount amortization on July 1, 2011, assuming no previous accrual of interest.

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a Jan 1 Cash 96 X HK 5 000 000 4 8…View the full answer


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Financial accounting

Financial accounting

ISBN: 978-1118285909

IFRS Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

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Question Posted: March 11, 2013 06:29:50
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