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Problem 10-9A (Part Level Submission) Pina Ltd. sold RS2,658,000, 9%, 10-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay
Problem 10-9A (Part Level Submission) Pina Ltd. sold RS2,658,000, 9%, 10-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest annually on January 1. Pina Company uses the straight-line method to amortize bond premium or discount. Assume the country allows the use of straight line amortization for bond premiums and discounts. (a) (b) Your answer is correct. (a) Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at 104. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017 Cash 2764320 2764320 Bonds Payable Dec 31, 2017 Interest Expense 228588 Bonds Payable 10632 Interest Payable 239220 Your answer is partially correct. Try again. Show the statement of financial position presentation for the bonds at December 31, 2017, for both the requirements in (a) and (b). PINA LTD. Statement of Financial Position December 31, 2017 Premium Non-current Liabilities Bonds Payable 2551680 Current Liabilities Interest Payable 239220 PINA LTD. Statement of Financial Position December 31, 2017 Discount Non-current Liabilities Bonds Payable 2737740
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