00:01
So, on the basis of the question we need to provide some pass from journal entries okay according to the given dates.
00:12
So, let us do it one by one.
00:15
So, number one we have to pass a journal entry to record insurance of bonds on october 1, 2021.
00:28
Okay.
00:29
So, here the entry is debit is cash which is 7 lakh dollar and credit will be bonds payable by 7 lakh dollar.
00:57
Now, the second one that is an adjusting entry okay on this is for record the issuance of bond.
01:11
The next entry will be we have to record is on december 31, 2021.
01:29
So, this entry is adjusting entry to record the throughout of insurance.
01:50
So, what is the entry debit is equals to interest expense by 17 ,500 dollar okay and credit will be this is we explain it for the credit will be interest payable by 17 ,500 dollar.
02:31
So, how we calculate this amount? so, here we have to find the interest.
02:37
So, we found 7 lakh multiply by 5 percent okay.
02:52
So, when we calculate it we got the amount...