What is correct for the journal entry on January

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Problems -

1. On January 1, 2012, AAA company issued $5,000,000, 9% (stated interest rate) bonds for cash $4,695,000. The market interest rate is 10%. Interest is payable annually on December 31. AAA uses the effective-interest method of amortizing bond discount. Under IFRS, what is correct for the journal entry on January 1, 2012?

2. On January 1, 2012, AAA company issued $5,000,000, 9% (stated interest rate) bonds for cash $4,695,000. The market interest rate is 10%. Interest is payable annually on December 31. AAA uses the effective-interest method of amortizing bond discount. What statements are correct regarding the effect of the journal entry on January 1, 2012?

Reference no: EM132969865

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