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PSA9.4 Prepare journal entries to record issue of debentures, and record redemption. LO3 Cameron Ltd issued $1 000 000 of 10%, 10-year debentures on 1
PSA9.4 Prepare journal entries to record issue of debentures, and record redemption. LO3 Cameron Ltd issued $1 000 000 of 10%, 10-year debentures on 1 January 2018. The debentures were dated 1 January and pay interest on 1 July and 1 January. The debentures were issued at face value. Assume no interest is accrued on 30 June, and Cameron Ltd's year- end is 31 December. Required a. Prepare the journal entry to record the issue of the debentures on 1 January 2018. b. Prepare journal entries to record the payment of interest on 1 July 2018 and the accrual of interest on 31 December 2018. c. At 31 December 2019, the entity redeemed the debentures at 104. Record the redemption of the debentures assuming that interest for the year had already been paid
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