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a.
Concept Introduction:
Bond Issue Cost: Bond issue costs are the costs that the company incurs at the time of issuing shares. It should be added to the discount or premium derived on the bond issue and should be amortized over the life span of the bond and the cost of issuance should be reduced from the cash received.
The treatment of bond costs under IFRS, and the discount or premium on the bond.
b.
Concept Introduction:
Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over a time period.
To prepare: The amortization table for the bond issue using the effective rate of interest.
c.
Concept Introduction:
Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.
To prepare: The journal for recording the required entries on the date of issue and on the first two interest dates in 2022 June 30 and December 31.
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Chapter 14 Solutions
Pearson eText Intermediate Accounting -- Instant Access (Pearson+)
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
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