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On March 1, 2019, SMN POWER HOLDING, issued 20 years, 10 %, OMR 800,000 face value...

On March 1, 2019, SMN POWER HOLDING, issued 20 years, 10 %, OMR 800,000 face value bonds at OMR 104. Interest is payable each year on March 1 and September 1. The company closes its books of accounts on December 31st every year and the company follows IFRS.

Required:                                                                                                                

a) Pass the necessary journal entries in the books of accounts of SMN POWER HOLDING for 1 year.                                                                                      

b) Prepare Bonds payable and cash account                                                   

c) show the carrying value of bond to be recorded in the balance sheet at the end of the year.

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Expert Solution

ekkarill92 answered 2 years ago
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