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what is the answer for empty fields Question 8 Monty Ltd. sold Rs3,438,000, 10%, 10-year bonds on January 1, 2017. The bonds were dated January
what is the answer for empty fields
Question 8 Monty Ltd. sold Rs3,438,000, 10%, 10-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest annually on January 1. Monty 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) 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 3575520 Bonds Payable 3,438,000 Dec. 31, 2017 Interest Expense 330048 Bonds Payable 13752 Interest Payable 343800 (b) 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 95. (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 3266100 Bonds Payable 3,438,000 Dec. 31, 2017 Interest Expense 343800 Bonds Payable 17190 Interest Payable 326610 Show the statement of financial position presentation for the bonds at December 31, 2017, for both the requirements in (a) and (b). MONTY LTD. Statement of Financial Position December 31, 2017 Premium Current Liabilities Interest Payable RS Non-current Liabilities Bonds Payable MONTY LTD. Statement of Financial Position December 31, 2017 Discount Current Liabilities Interest Payable RS Non-current Liabilities Bonds PayableStep by Step Solution
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