Question - On January 1, 2017, Cullumber Corporation issued $760,00 of 9% bonds, due in 10 years. The bonds were issued for $712,644, and pay interest each July 1 and January 1.
Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective- interest rate of 10%.
Can someone explain to me the IFRS regulation in regards to this type of problem? I am not understanding the difference between IFRS and GAAP, therefore, I don't even know where to start with this problem. Thank you.