On September 30, 2020, siemens Corporation issued Rs.5,000,000 face value of 9%,5 years bonds to yield 8%. The bonds pay interest annually on Oct 1. Instructions 1. At what amount Engro will get to record the liability on September 30, 2020? a. siemens year end is December 31, what will be the interest expense recorded on income statement and the amortization added/subtracted from the bond liability on December 31,2020 b. What will be the bond liability on Oct 1,2021 and interest expense recorded for the year? c. Record Journal entries and adjusting entries for the dates given above
On September 30, 2020, siemens Corporation issued Rs.5,000,000 face value of 9%,5 years bonds to yield 8%. The bonds pay interest annually on Oct 1. Instructions 1. At what amount Engro will get to record the liability on September 30, 2020? a. siemens year end is December 31, what will be the interest expense recorded on income statement and the amortization added/subtracted from the bond liability on December 31,2020 b. What will be the bond liability on Oct 1,2021 and interest expense recorded for the year? c. Record Journal entries and adjusting entries for the dates given above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:On September 30, 2020, siemens Corporation issued Rs.5,000,000 face value of 9%,5 years bonds
to yield 8%. The bonds pay interest annually on Oct 1. Instructions 1. At what amount Engro will get
to record the liability on September 30, 2020? a. siemens year end is December 31, what will be the
interest expense recorded on income statement and the amortization added/subtracted from the
bond liability on December 31,2020 b. What will be the bond liability on Oct 1,2021 and interest
expense recorded for the year? c. Record Journal entries and adjusting entries for the dates given
above
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