Question
Shayan Domestic Appliance Company has been established mainly through issuance of Stock and partly by issuance of 05 years 12% 1,000 bonds of Rs.
Shayan Domestic Appliance Company has been established mainly through issuance of Stock and partly by issuance of 05 years 12% 1,000 bonds of Rs. 1,000 each on 01 July, 2020 at 2% premium. Interest is payable annually. Required a) Record necessary accounting entries for the issuance of bonds. Payment of periodic interest on Bonds. b) c) d) e) f) Carry out adjustment of amortization of bonds premium under straight line method at each interest payment. Present the bonds and premium in the balance sheet prepared as at 30 June, 2021. Retirement of bonds at maturity. Compute the effective rate of interest on these bonds.
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Accounting Principles Part 3
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
6th Canadian edition Volume 1
1118306805, 978-1118306802
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