Safari
:PM sun Jun
HW for extra credit
ELO Lorance SpA issued year bonds on January for This price resulted in an effectiveinterest rate of on the bonds. Interest is payable annually on January Lorance uses the effectiveinterest method to amortize bond premium or discount.
Instructions
Prepare the journal entries to record the following. Round to the nearest euro.
a The issuance of the bonds.
b The accrual of interest and the discount amortization on December
c The payment of interest on January
HW for extra credit:
Continue this question, and finish the amortization schedule over the first years from to
Lorance SpA
Bond Discount Amortization Schedule
tablePeriodInterest to be paid,Interest Expense,Discount amortization,Bond carrying value
