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Copyright 2011 John Wiley & Sons, Inc. Weygandt, IFRS, 1/e, Solutions Manual (For Instructor Use Only) 10-37
PROBLEM 10-3A
(a) 2011May 1 Cash ............................................................. 600,000
Bonds Payable................................. 600,000
(b) Dec. 31 Bond Interest Expense........................... 9,000Bond Interest Payable (CHF600,000 X 9% X 2/12) ........ 9,000
(c) Non-current LiabilitiesBonds Payable, due 2016.................................. $600,000
Current LiabilitiesBond Interest Payable........................................ $ 9,000
(d) 2012May 1 Bond Interest Payable ............................ 9,000
Bond Interest Expense (CHF600,000 X 9% X 4/12)................. 18,000
Cash..................................................... 27,000(e) Nov. 1 Bond Interest Expense........................... 27,000
Cash (CHF600,000 X 9% X 1/2) ... 27,000
(f) Nov. 1 Bonds Payable.......................................... 600,000Loss on Bond Redemption................... 12,000
Cash (CHF600,000 X 1.02) ............ 612,000
