Q# 01 Mr. Shahid Iqbal issued most recently (1st January 2012) 9% bond payable in 5 Year with Annual Interest Payment on 1st January Every year. Par Value of Bond is Rs. 100,000 and Market or Competitors have issued similar risky bond on 8% interest rate per annum. Required: Calculate Market or Intrinsic Price of Bond. With help of Market value and given data, prepare Schedule for Amortization of Premium or Discount on Bond by Effective interest rate or Reducing Balance method. Prepare all necessary Journal entries from January 01, 2012 to January 01, 2017.

Q# 01 Mr. Shahid Iqbal issued most recently (1st January 2012) 9% bond payable in 5 Year with Annual Interest Payment on 1st January Every year. Par Value of Bond is Rs. 100,000 and Market or Competitors have issued similar risky bond on 8% interest rate per annum. Required: Calculate Market or Intrinsic Price of Bond. With help of Market value and given data, prepare Schedule for Amortization of Premium or Discount on Bond by Effective interest rate or Reducing Balance method. Prepare all necessary Journal entries from January 01, 2012 to January 01, 2017.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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