Amwaj Company issued 129, 10-year bonds with a par value of BD 2,000,000 on January 1, 2018. Interest is to be paid semiannually on each June 30 and December 31. The bonds are issued at BD 2.147.214 cash when the market rate for this bond is 1096 Required: A) Prepare the journal entry to record the issuance of the bonds on January 1, 2018. B) Prepare the journal entry to record the first semiannual Interest payment on June 30, 2018 (assume that Amwaj uses the straight line method of amortization of any discount or premium). Prepare the journal entry to record the retirement of the bonds at maturity (assume that all interest payments have already been made). For the toolbar, press ALT+F10 (PC) or ALT=EN+F10 (Mac)

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...
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Amwaj Company issued 129, 10-year bonds with a par value of BD 2,000,000 on January 1, 2018. Interest is to be paid semiannually on each June 30 and December 31. The bonds are issued at BD 2.147.214 cash when the market rate for this bond is 1096 Required: A) Prepare the journal entry to record the issuance of the bonds on January 1, 2018. B) Prepare the journal entry to record the first semiannual Interest payment on June 30, 2018 (assume that Amwaj uses the straight line method of amortization of any discount or premium). Prepare the journal entry to record the retirement of the bonds at maturity (assume that all interest payments have already been made). For the toolbar, press ALT+F10 (PC) or ALT=EN+F10 (Mac).
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