Homework Answers
1) Calculation of Accrued Interest (from 1 Jan to 30 April) :-
= Face Value of Bonds * Rate of Interest * Period
= $1600000 * 12% * (4/12)
= $64000
2) Journal Entry of Bond Issuance :-
| Transaction | Particulars | Debit($) | Credit($) |
| 1) | Cash A/c ($1408000+$64000) | 1472000 | |
| Bonds Payable A/c | 1408000 | ||
| Interest Payable (Accrued) A/c | 64000 | ||
| (Being Record Issuance of Bond) |
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