AA0115 TOPIC 10

Bond Redemptions

Based on Example 11, Warisan Nusantara Bhd. would like to redeem
Bonds AA with cash at maturity.

Instruction:
Prepare journal entry to record this transaction.

30/4/2017

Dr Bond payable AA 6% 20 000 000

Dr Interest expenses 400 000

Cr Bank 20 400 000

(redemp bond at maturity date)

Financial Statement Presentation of Liabilities

Warisan Nusantara Bhd
Statement of Financial Position
As at 31 December 2012 (Extract)

Non Current Liabilities XX
Long-Term Notes Payable XX
Mortgage Payable XX
Bonds Payable 6% XX
Bonds Payable 8% XXX
Total Non Current Liabilities

Financial Statement Presentation of Liabilities

Current Liabilities RM RM
Account Payable XX
Notes Payable XX
Warranty Liability XX
Expenses payable XX
Unearned Revenues XX XXX
Total Liabilities
XXX

SUMMARY

❑Liabilities are item in Statement of Financial Position.
❑Formed by current liabilities and long-term liabilities.
❑Current liabilities would be paid off within a year.
❑Non Current liabilities would to be paid off in more than a year.







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