b) The following section is taken from Nolana Sdn Bhd's statement of financial position at December 31, 2020. Current liabilities RM Interest Payable Non-current liabilities 180,000 Bonds Payable, 9%, due January 1, 2025 4,000,000 Interest is payable semi-annually on January 1 and July 1. The bonds are callable on any interest date. Required: i. Journalize the payment of the bond interest on January 1, 2021. ii. Assume that on January 1, 2021, after paying interest, Nolana Sdn Bhd calls bonds having a face value of RM1,600,000. The call price is 104. Record the redemption of the bonds.

b) The following section is taken from Nolana Sdn Bhd's statement of financial position at December 31, 2020. Current liabilities RM Interest Payable Non-current liabilities 180,000 Bonds Payable, 9%, due January 1, 2025 4,000,000 Interest is payable semi-annually on January 1 and July 1. The bonds are callable on any interest date. Required: i. Journalize the payment of the bond interest on January 1, 2021. ii. Assume that on January 1, 2021, after paying interest, Nolana Sdn Bhd calls bonds having a face value of RM1,600,000. The call price is 104. Record the redemption of the bonds.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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