Prepare journals entries for the bond issue

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Problem - On June 30, 2019 Golf Green Inc. sold 12,000 of its $1,000 face value 10-year, 6% bonds when the market rate of interest was 8%. Interest payments are made on June 30th and Jan 1st each year. Golf Green follows IFRS. On May 1, 2021 Golf Green extinguished 3,000 of the bonds by issuing 40,000 common shares. At this time the accrued interest was paid to the bondholders whose bonds were being extinguished. In addition, to the bond retirement Golf Green issued an additional 10,000 new shares at $25 each.

Prepare journals entries for the bond issue, payment of semi-annual interest, year-end adjusting entry, the retirement of the bonds and the issue of the additional shares. The company has a Dec 31 year end.

Reference no: EM132858264

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