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Accounting Non-current Liabilities (Bonds) O...

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Accounting Non-current Liabilities (Bonds) On 1 July 2007 Michael Ltd issued $1 million in five-year debentures that pay interest every six months at a coupon rate of 10 percent. At the time of issuing the securities, the market required a rate of return of 8 percent. Any discount or premium on issue is amortised using the effective interest method. Required. a) Determine the issue price. b) Provide journal entries at: i) 1 July 2007 ii) 30 June 2008 iii) 30 June 2009 Please help me with this question. Thank you.,thank you

 

Paper#6238 | Written in 18-Jul-2015

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