On January 1, 2019, a company acquired $2,000,000 face amount of bonds dated January 1, 2022. The bonds mature on Decemb
Posted: Thu May 19, 2022 1:44 pm
On January 1, 2019, a company acquired $2,000,000 face amount of
bonds dated January 1, 2022. The bonds mature on December 31, 2023.
The life of the bond is 5 years and 8% interest is payable annually
on December 31. The cost of the bond is quoted at 90, a price which
will yield a 12% effective rate per year.
Required: a. Prepare Amortisation table and journal entries
until the bond reaches maturity.
bonds dated January 1, 2022. The bonds mature on December 31, 2023.
The life of the bond is 5 years and 8% interest is payable annually
on December 31. The cost of the bond is quoted at 90, a price which
will yield a 12% effective rate per year.
Required: a. Prepare Amortisation table and journal entries
until the bond reaches maturity.