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
data dictionary

Difference between Fica and federal income taxes  Employers should file Form 940 with the IRS at the end of every calendar quarter. There are several rules about when to turn i

Ledger is said to be the principal book entry and the transactions can even be directly entered into the ledger account.” Elaborate and explain why journal is necessary.

Do you enjoy college life? Do you enjoy teaching others? If therefore you might want to consider a career as a college professor. Even though a position as a college professor may

1. Fill in the table below.  Assume TC stands for Total Cost, TFC as Total Fixed Cost, TVC as Total Variable Cost, ATC as Average Total Cost, AFC as Average Fixed Cost, AVC as Aver

When buying an owner operated business from a franchised organization is the previous store manager''s salary discretionary?? can they count that as net income to the new owner op

I need help with accounting 205 week four assignment

Q. What do you mean by consigned goods? FOB destination, freight collect - Seller acquires freight charges and buyer initially pays freight charges. Buyer deducts freight accus

HOW TO DO DOUBLE ENTRY QUESTIONS

Q. Explain about income statement? The income statement, sometimes called as an earnings statement that reports the profitability of a business organization for a stated period