Create a balance sheet and manage accounting entries, Accounting Basics

Two companies enter into loan agreements on 1 March 2012. On that date they also enter into an agreement to swap the loans. The details for each company and loan are:

L R R Hood Ltd   B B Wolf Ltd

US company       US company

Borrows £stg1,500,000   Borrows $US 4,980,080

Interest rate 8 per cent payable annually              Interest rate 11 per cent payable annually

Repayable in £stg             Repayable in $US

Loan repayable in 3 years             Loan repayable in 3 years

Exchange rates:

1 March 2012     $US 1.00 = £stg0.3012

30 June 2012      $US 1.00 = £stg0.2980

The balance date for both companies is 30 June.

Required

What are the accounting entries in the books of L R R Hood Ltd on 1 March and 30 June 2012?

Posted Date: 4/2/2013 2:30:32 AM | Location : United States







Related Discussions:- Create a balance sheet and manage accounting entries, Assignment Help, Ask Question on Create a balance sheet and manage accounting entries, Get Answer, Expert's Help, Create a balance sheet and manage accounting entries Discussions

Write discussion on Create a balance sheet and manage accounting entries
Your posts are moderated
Related Questions
Q. Effects of bias in terms of accounting? Where there is no correspondence the cause may be (a) bias or (b) lack of completeness. - Effects of bias. Accounting measuremen

Accounts payable subsidiary ledger Accounts are designed to show balance owed to every creditor. Liability accounts generally have credit balances. Accounts are not assigned nu

A department transferred 7,000 units to the finished goods storeroom during a month. There was no beginning work in process inventory, but 500 units were still in process at the

Q. Neutrality of accounting information? The Neutrality signifies that the accounting information must be free of measurement method bias. The primary concern must be relevance

Is there nay depreciation needed to perform when the revaluation model is applied to the asset?

Why it is important for independent auditor to be a member of a professional body?

stpes to be taken prepaing for final accounts

Question 1 Briefly explain the functions of accounting Question 2 Explain the three branches of accounting Question 3 What is single entry system? What are the advantages and

A business may perhaps engage in thousands of transactions during a year. An accountant summarizes and classifies the data in these transactions to create useful information.

Q. Explain about Period costs? Period costs are costs not noticeable to specific products and expensed in the period incurred. Administrative and Selling costs are period costs