ISSUANCE OF BONDS

1. On Jan 1, 2015, Angels Ltd. issued 10-year, 8%, 800,000$ par value bonds with interest payable four times in a year. The market rate at the time of issuance is 8% and the company year-end is December 31.

Question: Record the issuance of bonds in Angels Ltd accounting books.

2. On Jan 1, 2012, Al Tamimi Finance Ltd. issued a 10-year, 8%, 200,000$ face value bond at 106 Interest is payable each year on July 5 and January 5. The company year-end is December 31 and follows IFRS.

Question: Pass the necessary journal entries and open interest account, interest payable account and premium on bonds account for 2018.