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.


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. What is the use of balance sheet? Balance sheet -- a statement of the financial position of a company at a single specific time(often at the close of business on last day

Prepare a Multiple-Step Income Statement based on the information presented in problem 4 above.                    Answer :

most consrvatism way of lower cost method

what is meaning by parallel accounts

Invoice is a text which haves the under mentioned details compulsorily. 1. Invoice Number 2. Name and address of the person 3. Invoice date Name and address of someone

What is the implication of applying accounting concepts wrongly


Process Solutions provides a computer-based document processing service. The accountant has produced the following analysis.   Standard Modifi

Q. Illsutarte the Summary of transactions? Summary of transactions is a teaching tool utilized to show the effects of transactions on the accounting equation. Note that the sto

Q. What do you eman by Purchases account? In periodic inventory procedure a merchandising company uses the Purchases account to record the cost of merchandise bought for resale