Question
On January 1, Year 1 WOOD Group issued 50,000 units at USD 20 par value bonds of 5% at face value. The bonds pay interest
On January 1, Year 1 WOOD Group issued 50,000 units at USD 20 par value bonds of 5% at face value. The bonds pay interest annually and mature on December 31, Year 2. The Company incurred bank and legal fees of USD 70,000 in conjunction with issuing the bonds. Annual effective interest rate 8.9781%.
- Please record the journal entries of this transaction.
- Please calculate the amounts to be shown in statement of financial position and statement of profit or loss for each of the 2 years of the bond
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The Theories Of Audit Expectations And The Expectations Gap
Authors: Ecaterina Volosin
1st Edition
3640192311, 978-3640192311
