Quiz 2.1 MBA 2022 Roll No.

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On June 30, 2020, FFC issued Rs. 3,000,000 face value of 5%, 5 years bonds to yield 7%. The bonds pay
semi-annual interest on Jan 1 and July 1.

Instructions

1. At what amount FFC will get to record the liability on June 30, 2020?
a. FFC’s year end is December 31, what will be the interest expense recorded on income
statement and the amortization added/subtracted from the bond liability on December
31, 2020
b. What will be the interest expense recorded on income statement and the amortization
added/subtracted from the bond liability on June 30, 2021
c. Record Journal entries and adjusting entries for the dates given above
Quiz 2.1 MBA 2022 Roll No._____________