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On 1 January 2019, Leaky Cauldron plc issues 12 million (par value) in 8-year, 8%,...

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Accounting

On 1 January 2019, Leaky Cauldron plc issues 12 million (par value) in 8-year, 8%, semi-annual coupon bonds. The rate of return required by the market is 12%. REQUIRED

i) What is the journal entry to record the issuance of the bond on 1 January 2019?

ii) What is the journal entry to record the first payment of interest on 30 June 2019?

iii) What is the journal entry to record the second payment of interest on 31 December 2019?

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