West Bengal Company sold Rs2,500,000, 8%, 10-year bonds on July 1, 2011. The bonds were dated July 1, 2011 and pay interest July 1 and January 1. West Bengal Company uses the straight-line method to amortize bond premium or discount. Assume no interest is accrued on June 30.Instructions(a) Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2011, assuming that the bonds sold at 104.(b) Prepare journal entries as in part (a) assuming that the bonds sold at 98.(c) Show statement of financial position presentation for each bond issue at December 31, 2011.View Solution:
West Bengal Company sold Rs2 500 000 8 10 year bonds on July

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