In order to fulfill its financing activities, Astro Co. issued Rp 505.000,000, 12%, 10-year bonds January 1, 2020. Interest payments were made semiannually (January 1 and July 1). Bonds are issued at 95. Instructions: a. Were bonds issued at discount or premium? b. Prepare the journal entry to record the issuance of the bonds on January 1, 2020! c. Prepare the journal entry to record amortization (using straight line method) on June 30, 2020! d. Show the financial position presentation of the bond on December 31, 2020. e. On July 1, 2021, the company redeemed the bonds at 94. Record the redemption of the bonds assuming that interest for the period has already been paid!
In order to fulfill its financing activities, Astro Co. issued Rp 505.000,000, 12%, 10-year bonds January 1, 2020. Interest payments were made semiannually (January 1 and July 1). Bonds are issued at 95. Instructions: a. Were bonds issued at discount or premium? b. Prepare the journal entry to record the issuance of the bonds on January 1, 2020! c. Prepare the journal entry to record amortization (using straight line method) on June 30, 2020! d. Show the financial position presentation of the bond on December 31, 2020. e. On July 1, 2021, the company redeemed the bonds at 94. Record the redemption of the bonds assuming that interest for the period has already been paid!
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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If you can answer please answer all points otherwise D and E is necessary
Transcribed Image Text:In order to fulfill its financing activities, Astro Co.
issued Rp 505.000,000, 12%, 10-year bonds January
1, 2020. Interest payments were made semiannually
(January 1 and July 1). Bonds are issued at 95.
Instructions:
a. Were bonds issued at discount or premium?
b. Prepare the journal entry to record the
issuance of the bonds on January 1, 2020!
c. Prepare the journal entry to record
amortization (using straight line method) on
June 30, 2020!
d. Show the financial position presentation of
the bond on December 31, 2020.
e. On July 1, 2021, the company redeemed the
bonds at 94. Record the redemption of the
bonds assuming that interest for the period
has already been paid!
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