Question
On January 1, 2015, Patterson Inc. issued $5,000,000, 9% bonds for $4,695,000. The market rate of interest for these bonds on January 1, 2015 was
On January 1, 2015, Patterson Inc. issued $5,000,000, 9% bonds for $4,695,000. The market rate of interest for these bonds on January 1, 2015 was 10%. Interest is payable annually on December 31.
Please answer the following questions.
(1) Prepare the journal entry on January 1, 2015, based on US GAAP and IFRS, respectively.
(2) Prepare the discount amortization table only up to December 31, 2016.
(3) Prepare the journal entry on December 31, 2015, based on US GAAP and IFRS, respectively.
(4) Prepare bonds section in the 2015 balance sheet, based on US GAAP and IFRS, respectively.
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International Accounting Standards Regulations Financial Reporting
Authors: Greg N. Gregoriou, Mohamed Gaber
1st Edition
0750669837, 978-0750669832
