On 01 March 2019, Bogota Limited issued $75,000 of 12%, Five year bonds at 110. The bonds were dated March 1 2019, and interest is payable on 01 March and 01 September. Bogota records amortisation using the straight line method. Bogota’s Financial year ends on 31 December. Required: Provide all necessary journal entries on each of the following dates; a) 01 March 2019 (3 Marks) b) 01 September 2019 (3 Marks) c) 31 December 2019 (3 Marks) d) 01 March 2024 (3 Marks)
On 01 March 2019, Bogota Limited issued $75,000 of 12%, Five year bonds at 110. The bonds were dated March 1 2019, and interest is payable on 01 March and 01 September. Bogota records amortisation using the straight line method. Bogota’s Financial year ends on 31 December. Required: Provide all necessary journal entries on each of the following dates; a) 01 March 2019 (3 Marks) b) 01 September 2019 (3 Marks) c) 31 December 2019 (3 Marks) d) 01 March 2024 (3 Marks)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On 01 March 2019, Bogota Limited issued $75,000 of 12%, Five year bonds at 110. The bonds were dated March 1 2019, and interest is payable on 01 March and 01 September. Bogota records amortisation using the straight line method . Bogota’s Financial year ends on 31 December. Required: Provide all necessary journal entries on each of the following dates; a) 01 March 2019 (3 Marks) b) 01 September 2019 (3 Marks) c) 31 December 2019 (3 Marks) d) 01 March 2024 (3 Marks)
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