ISSUANCE OF BONDS 1. On Jan 1, 2015, Angels Ltd. issued 10-year,...
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ISSUANCE OF BONDS
1. On Jan 1, 2015, Angels Ltd. issued 10-year, 8%, 800,000$ par value bonds with interest payable four times in a year. The market rate at the time of issuance is 8% and the company year-end is December 31. Question: Record the issuance of bonds in Angels Ltd accounting books. 2. On Jan 1, 2012, Al Tamimi Finance Ltd. issued a 10-year, 8%, 200,000$ face value bond at 106 Interest is payable each year on July 5 and January 5. The company year-end is December 31 and follows IFRS. Question: Pass the necessary journal entries and open interest account, interest payable account and premium on bonds account for 2018.
ISSUANCE OF BONDS
1. On Jan 1, 2015, Angels Ltd. issued 10-year, 8%, 800,000$ par value bonds with interest payable four times in a year. The market rate at the time of issuance is 8% and the company year-end is December 31.
Question: Record the issuance of bonds in Angels Ltd accounting books.
2. On Jan 1, 2012, Al Tamimi Finance Ltd. issued a 10-year, 8%, 200,000$ face value bond at 106 Interest is payable each year on July 5 and January 5. The company year-end is December 31 and follows IFRS.
Question: Pass the necessary journal entries and open interest account, interest payable account and premium on bonds account for 2018.
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