ISSUANCE OF BONDS
1. On Jan 1, 2015, Angels Ltd. issued 10-year, 8%, OMR 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. Requirement: Record the issuance of bonds in Angels Ltd accounting books.
2. On Jan 1, 2012, Al Tamimi Finance Ltd. issued a 10-year, 8%, OMR 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. Requirements: Pass the necessary journal entries and open interest account, interest payable account and premium on bonds account for 2018.
3. On Jan 1, 2014, Engels Ltd. issued a 10-year, 8%, OMR 500,000 face value bond at 97 with interest payable at the end of each quarter. Requirement: Record the journal entries and prepare necessary ledger account for the year 2014.
