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)

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 16E
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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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