Jashanpreet Industries Limited (JIL) issued $ 1,800,000, 8%, 20-year bonds on January 1, 2021 and received proceeds of $ 2,200,000. Interest is payable semi-annually on July 1 and January 1. JIL's year-end is December 31. Assume the market rate for similar bonds is 6%.
Instructions
a) Prepare all necessary journal entries for JIL during 2021.
b) Prepare a partial balance sheet for TIL on December 31, 2021, showing all areas affected by this bond transaction.

Question

Quizplus · Accepted Answer

The Answer of Jashanpreet Industries Limited (JIL) issued $ 1,800,000, 8%, 20-year bonds on January 1, 2021 and received proceeds of $ 2,200,000. Interest is payable semi-annually on July 1 and January 1. JIL's year-end is December 31. Assume the market rate for similar bonds is 6%.
Instructions
a) Prepare all necessary journal entries for JIL during 2021.
b) Prepare a partial balance sheet for TIL on December 31, 2021, showing all areas affected by this bond transaction.

Jashanpreet Industries Limited (JIL) Issued $ 1,800,000, 8%, 20-Year Bonds