Reference no: EM133118997
Question - Tamarisk Ltd. issued a $1,094,000, 10-year bond dated January 1, 2020. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company s year-end was December 31, and Tamarisk followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond.
Required -
1. Calculate the present value of the bond using either the PV tables or your financial calculator. Round to the nearest whole dollar.
2. Prepare a full amortization table for this bond for the 10-year period.
3. Prepare the Journal entry to record the interest payment at July 1, 2021.
4. Prepare the year end journal entry at December 31, 2023 to record the accrual of the interest expense.
5. Prepare the entry at maturity to retire the bond.
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