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Do up a bond amortisation table over the five-year period

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Reference no: EM132532247

Question - The following information relates to the issuance of bonds by ABC Ltd on 1 January 20X1: Face value $300,000 Market interest rate 6% Stated interest rate 7% Interest payments Annual First Interest payment 31 December 20X1 Maturity date 31 December 20X5.

Required -

(a) ABC Ltd amortises bonds by the effective interest method. Do up a bond amortisation table over the five-year period. Please round your answers to the nearest dollar.

(b) Illustrate by preparing journal entries, narratives not required, on issuance date and on the first interest payment date based on applicable Singapore Financial Reporting Standard. Please round your answers to the nearest dollar.

Reference no: EM132532247

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