2.99 See Answer

Question: Assume the same information as in IFRS14-

Assume the same information as in IFRS14-5, except that the bonds were issued at 84.95 to yield 12%. Prepare the journal entries to record
a. the issuance of the bonds,
b. the payment of interest and related amortization on July 1, 2017, and
c. the accrual of interest and the related amortization on December 31, 2017.
(Round to the nearest dollar.)

From IFRS14-5:
Foreman Company issued $800,000 of 10%, 20-year bonds on January 1, 2017, at 119.792 to yield 8%. Interest is payable semiannually on July 1 and January 1.


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