Question
Aylmer follows IFRS On January 1, 2015, Aylmer issued $400,000 12% 10-year bonds. Interest is paid on an annual basis. The bonds were issued for
Aylmer follows IFRS
On January 1, 2015, Aylmer issued $400,000 12% 10-year bonds. Interest is paid on an annual basis. The bonds were issued for investors to have a yield of 7%. Because of the high interest rate, Aylmer decided to call the bonds on December 31, 2021 at 115. No entries were made in 2021 in respect to this bond (interest is owed for 2021 since the bonds were outstanding for 2021)
NOTE the amount on the trial balance ($467,744) is your check number for the amortization schedule at December 31, 2020 BEFORE ADJUSTMENTS and 2021 Interest payment.
In the Excel spreadsheet, see the tab labelled Bonds Payable Series 1
Required:
a) Determine the carrying value
b) create the amortization schedule
c) complete the journal entries for the year end, 2021
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