On 1 January 2019, Halo Limited purchased a 12% $900,000 bond as its debt investment. 1....
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On 1 January 2019, Halo Limited purchased a 12% $900,000 bond as its debt investment. 1. Halo purchased the bond at $968,234. 2. The bond provides bondholders with a 10% yield per annum. 3. The bond matures on 1 January 2024, with interest payable on 31 December each year. 4. Halo's business model for the bond is held-for collection. Required: Prepare a bond amortisation schedule by showing cash received, interest revenue, any premium or discount amortised and the carrying amount of bonds on 31 December 2019 and 2020 (rounded to the nearest dollar). On 1 January 2019, Halo Limited purchased a 12% $900,000 bond as its debt investment. 1. Halo purchased the bond at $968,234. 2. The bond provides bondholders with a 10% yield per annum. 3. The bond matures on 1 January 2024, with interest payable on 31 December each year. 4. Halo's business model for the bond is held-for collection. Required: Prepare a bond amortisation schedule by showing cash received, interest revenue, any premium or discount amortised and the carrying amount of bonds on 31 December 2019 and 2020 (rounded to the nearest dollar).
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Related Book For
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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