Question
On 1 January 20X0, Laron Inc issues $400,000 of 6%, 5-year bonds dated 1 January 20X0. Interest is payable each June 30 and December 31.
On 1 January 20X0, Laron Inc issues $400,000 of 6%, 5-year bonds dated 1 January 20X0. Interest is payable each June 30 and December 31. The market rate on the date of issuance is 8%. Laron has a 31 December year end and applies IFRS. The company received proceeds for the bond of $367,556 which was the present value at January 1 20X0.
1.) Prepare the journal entries required in 20X0.
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ISE Business Accounting Volume 1
Authors: Frank Wood, Alan Sangster
8th Edition
0273638394, 9780273638391
