Homework Answers
Prepare the journal entries as follows:
| Date | Accounts | Debit | Credit |
| 31.12.16 | Bonds payable | 154200 | |
| Interest income (211000*0.06) | 12660 | ||
| Loss on retirement of debt ( 211000 - 770000/5) | 57000 | ||
| Investment in bonds (211000 - 190000*0.08 + 12660) | 208460 | ||
| Interest expense (154000*0.10) | 15400 | ||
| 31.12.17 | Bonds payable | 171047 | |
| Interest income (208460*0.06) | 12508 | ||
| Interest in Zack | 34779 | ||
| Investment in bonds | 202914 | ||
| Interest expense (154200*0.1 | 15420 |
December 31, 2016
Bonds payable 154,200
Interest income 12,660
Loss on retirement of debt 57,000
Investment in bonds 208,460
Interest expense 15,400
2.
December 31, 2018
Bonds payable+/-1 154,662
Interest income+/-1 12,346
Investment in Zack+/-1 51,348
Investment in bonds+/-1 202,914
Interest expense+/-1 15,442
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