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On 1 July 2022, ABC Limited (ABC) issued bonds with a face value of $500,000 and annual interest rate of 5% at 95 . The
On 1 July 2022, ABC Limited (ABC) issued bonds with a face value of $500,000 and annual interest rate of 5% at 95 . The bonds will pay interest on every 30 June and 31 December until its maturity on 30 June 2032. ABC has 31 December year end. Required: (a) Prepare accounting journal entries for the issuance of the bonds and the recognition of interest expenses for 2022 . Narratives are required. (10 marks) b) Explain the amortization of discount on bonds on the cash flows of ABC
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