Jashanpreet Industries Limited $($JIL$)$ issued $$1,600,000,8\%,20-$year bonds on January $1,2021$ and received proceeds of $$2,000,000.$ Interest is payable semi$-$annually on July $1$ and January $1.$ JIL's year$-$end is December $31.$ Assume the market rate for similar bonds is $5\%.$

Instructions

a$)$Prepare all necessary journal entries for JIL during $2021.$

b$)$Prepare a partial balance sheet for TIL on December $31,2021,$ showing all areas affected by this bond transaction.

Answer text