Zhu Ltd. issues HK$5 million, 10-year, 9% bonds at 96, with interest payable annually on January 1.
Question:
Zhu Ltd. issues HK$5 million, 10-year, 9% bonds at 96, with interest payable annually on 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, 2020.
b. Prepare the adjusting journal entry to record interest expense and bond discount amortization on December 31, 2020.
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Step by Step Answer:
a Jan 1 Cash 96 X HK5000000 4800000 Bonds Payable 480...View the full answer
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ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
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