On September 1, 2015, Yone Ltd. (Yone) issued a $50,900,900 bond with a 6 percent coupon rate
Question:
On September 1, 2015, Yone Ltd. (Yone) issued a
$50,900,900 bond with a 6 percent coupon rate and a maturity date of August 31, 200.
Interest is paid semi-annually on March | and August 31. The effective interest rate for a bond of this type on September 1, 2009 was 7 percent. Yone’s year-end is August 31.
Required
a. What will be the proceeds from the bond issue?
b Prepare the journal entry to record the issue of the bond on September 1, 2015.
© Prepare an amortization schedule using the straight-line method for any premium os discount that arose on issue of the bond.
a. Prepare the journal entry required to record the interest expense on March 1 and August 31, 2016, 2021, and 2026.
€. Prepare the journal entry required to record the retirement of the bond on maturity.
Step by Step Answer: