Question#:
a Offbalancesheet financing is an attempt to borrow monies in such a way to prevent
recording the obligations. Explain the statement with appropriate rationale?
b On July Sugarland Company issued Tk face value of year
bonds at a yield of Sugarland uses the effective interest method to amortize bond
premium or discount. The bonds pay semiannual interest on June and December
Required:
i Prepare the journal entries to record the issuance of the bonds on July
ii Prepare the journal entries to record the payment of interest and the amortization
of the discount on December ; on June ; on December
iii. What amount of interest expense is reported for
iv Show the proper balance sheet presentation for the liability for bonds payable on
the December balance sheet.
