Assume the same information as in E14.4, except that the bonds were issued at 84.95 to yield

Question:

Assume the same information as in E14.4, except that the bonds were issued at 84.95 to yield 12%.

Instructions

Prepare the journal entries to record the following. Round to the nearest euro.

a. The issuance of the bonds.

b. The payment of interest and related amortization on July 1, 2022.

c. The accrual of interest and the related amortization on December 31, 2022.

E14.4

Foreman Cleaners issued €800,000 of 10%, 20- year bonds on January 1, 2022, at 119.792 to yield 8%. Interest is payable semiannually on July 1 and January 1.

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Intermediate Accounting IFRS

ISBN: 9781119607519

4th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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Question Posted: Aug 02, 2021 07:37 AM

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Assume the same information as in E14.4, except that the bonds were issued at 84.95 to yield

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a The issuance of the bonds Debit Cash 680000 Credit ...View the full answer

Intermediate Accounting IFRS

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