Aylmer follows IFRS On January 1, 2015, Aylmer issued $400,000 12 % 10-year bonds. Interest is paid on an annual basis. The bonds were issued for investors to have a yield of 7%. Because of the high interest rate, Aylmer decided to call the bonds on December 31, 2021 at 115. No entries were made in 2021 in respect to this bond (interest is owed for 2021 since the bonds were outstanding for 2021) NOTE - the amount on the trial balance ($467,744) is your check number for the amortization schedule at December 31, 2020 - BEFORE ADJUSTMENTS and 2021 Interest payment. In the Excel spreadsheet, see the tab labelled "Bonds Payable - Series 1" Required: a) Determine the carrying value b) create the amortization schedule c) complete the journal entries for the year end, 2021
Aylmer follows IFRS On January 1, 2015, Aylmer issued $400,000 12 % 10-year bonds. Interest is paid on an annual basis. The bonds were issued for investors to have a yield of 7%. Because of the high interest rate, Aylmer decided to call the bonds on December 31, 2021 at 115. No entries were made in 2021 in respect to this bond (interest is owed for 2021 since the bonds were outstanding for 2021) NOTE - the amount on the trial balance ($467,744) is your check number for the amortization schedule at December 31, 2020 - BEFORE ADJUSTMENTS and 2021 Interest payment. In the Excel spreadsheet, see the tab labelled "Bonds Payable - Series 1" Required: a) Determine the carrying value b) create the amortization schedule c) complete the journal entries for the year end, 2021
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Aylmer follows IFRS
On January 1, 2015, Aylmer issued $400,000 12% 10-year bonds. Interest is paid on an annual basis. The bonds were
issued for investors to have a yield of 7%. Because of the high interest rate, Aylmer decided to call the bonds on
December 31, 2021 at 115. No entries were made in 2021 in respect to this bond (interest is owed for 2021 since the bonds
were outstanding for 2021)
NOTE - the amount on the trial balance ($467,744) is your check number for the amortization schedule at December 31,
2020 - BEFORE ADJUSTMENTS and 2021 Interest payment.
In the Excel spreadsheet, see the tab labelled "Bonds Payable - Series 1"
Required:
a) Determine the carrying value
b) create the amortization schedule
c) complete the journal entries for the year end, 2021
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