11.5 (LO 2) The following section is taken from Ohlman Ltd.'s. statement of financial position December 31, 2019. Non-current liabilities Bonds payable, 7%, due January 1, 2024 HK$16,000,000 Current liabilities Interest payable 1,120,000 Bond interest is payable annually on January 1. The bonds are callable on any interest date. Instructions a. Journalize the payment of the bond interest on January 1, 2020. b. Assume that on January 1, 2020, after paying interest, Ohlman calls bonds having a face value HKS6,000,000. The call price is 103. Record the redemption of the bonds. c. Prepare the entry to record the accrual of interest on December 31, 2020.

11.5 (LO 2) The following section is taken from Ohlman Ltd.'s. statement of financial position December 31, 2019. Non-current liabilities Bonds payable, 7%, due January 1, 2024 HK$16,000,000 Current liabilities Interest payable 1,120,000 Bond interest is payable annually on January 1. The bonds are callable on any interest date. Instructions a. Journalize the payment of the bond interest on January 1, 2020. b. Assume that on January 1, 2020, after paying interest, Ohlman calls bonds having a face value HKS6,000,000. The call price is 103. Record the redemption of the bonds. c. Prepare the entry to record the accrual of interest on December 31, 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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