Question

Question 7 On January 1, 2020, Teal Mountain Inc. sold 14% bonds having a maturity value of $840,000 for $900,563, which provides the bondholders with a 12% yield. The bonds are dated January 1, 2020, and mature on January 1, 2025, with interest payable on January 1 of each year. The company follows IFRS and uses the effective interest method. (a) Your answer is correct. Prepare the journal entry at the date of issue. (Round answers to O decimal places, e.g. 5,255. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation Jan. 1, 2020 TCash 900563| Bonds Payable 900563

I cant get part c)

Answer 1

SOLUTION : PART C
Journal Entries
Date	Account Title and explanation	Debit	Credit
Dec 31, 2020	Interest Expenses	$               1,08,068
	Bonds Payable	$                     9,532
	Interest Payable		$                 1,17,600
Jan 01, 2021	Interest Payable	$               1,17,600
	Cash		$                 1,17,600