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 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.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PB: Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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