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Appleo Ltd. has the following bonds: i) $1,375,890 in bonds that have $246,500 of which is not amortized and is at a discount; ii) $5,450,000
Appleo Ltd. has the following bonds: i) $1,375,890 in bonds that have $246,500 of which is not amortized and is at a discount; ii) $5,450,000 in bonds that have $675,000 of which is not amortized and is at a premium. a) Prepare a statement of financial position for these two bonds. (4 marks) Appleo Ltd. later in the year has decided to issue 3,000 bonds, each having a face value of $1,500. (related to questions b through d) b) Prepare the journal entry to record the sale of the bonds at face value. (2 marks) c) Prepare the journal entry to record the sale of the bonds at a premium of $100,000. (2 marks) d) Prepare the journal entry to record the sale of the bonds at a discount of $71,000. (2 marks) e) In the above (b through e) which scenario provides the highest yield and explain why? (2 marks) Date Account and Explanation Debit Credit
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