H&L Pines
The sole shareholder of a national supplier of evergreen trees is expanding its product line. This expansion requires a $6.5 million investment. The company decides to finance this expansion through the issuance of bonds and must record the accounting entries involved with this issuance, along with the related interest payments and amortization of the bonds.
Collection: Ivey Business School (Canada)
Ref: IVEY-9B12B009-E
Format: PDF
Number of pages: 2
Publication Date: May 18, 2012
Language: English
Review date: Mar 11, 2015
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Description
The sole shareholder of a national supplier of evergreen trees is expanding its product line. This expansion requires a $6.5 million investment. The company decides to finance this expansion through the issuance of bonds and must record the accounting entries involved with this issuance, along with the related interest payments and amortization of the bonds.
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Year: 2011
Geographic Setting: Canada
Industry Setting: Agriculture, Forestry, Fishing and Hunting;
Learning Objective
·To introduce students to the current method of accounting for bonds payable. ·To give students practice in recording the issuance of bonds, the payment and accrual of interest, and the amortization of bonds. ·To give students practice in accounting for the recall of bonds payable.
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