Jamieson Inc.issues US$1,000,000 of two-year bonds on January 1,2017,at par that mature on December 31,2018.
The coupon rate on the bonds is 4% payable annually on December 31.Jameison's year-end is December 31.It does not accrue interest throughout the year.Exchange rates:
- January 1,2017,C$1.00 = US$0.99
- December 31,2017,C$1.00 = US$0.97
- December 31,2018,C$1.00 = US$1.01
- Average rate 2018,C$1.00 = US$0.98
- Average rate 2018,C$1.00 = US$0.99
Required:
a)Record the journal entry on the date of issuance of the bond
b)Record the journal entry to revalue the obligation at the period end,December 31,2017.
c)Record the journal entry to record the payment of interest,December 31,2017.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q64: Which statement is correct about offsetting?
A)It deteriorates
Q66: Which statement is correct about offsetting?
A)Offsetting generally
Q69: Explain what an "in-substance defeasance" is and
Q73: Which statement is correct about offsetting?
A)Offsetting is
Q88: There are three independent situations summarized below.In
Q89: On January 1,2014,Snuggly Bunny Ltd.issued $3,000,000 of
Q92: Legally Yours,a law firm,sells $8,000,000 of four-year,8%
Q95: Contrast the differences between IFRS and ASPE
Q102: Bailey's Gold Mines Inc.(BGMI)purchases a piece of
Q107: A company is required to disclose information
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents