Prepare the accounting entries to record the issue

Assignment Help Financial Accounting

Reference no: EM132794008

On 30 June 2018 Magoo Ltd issued 50 000 convertible notes with a face value of $50 million for a term of five years. Each note was convertible at the option of the holder into one ordinary share on or before maturity. The coupon interest rate is 7% per annum while the market interest rate for comparable non-convertible debt is 8% per annum. Interest is payable annually in arrears on 30 June during the term of the convertible notes.

In accordance with the treatment outlined in AASB 132 'Financial

Instruments: Presentation' and ensuring compliance with AASB 9 'Financial Instruments'

problem 1: Prepare the accounting entries, including narrations, to record
(i) the issue of convertible notes on 30 June 2018, and (ii) the interest payment on 30 June 2019. Show your calculations.

problem 2: Suppose the holders of the notes elect to convert the notes to ordinary shares on 30 June 2020. Write all of the the accounting entries, including narrations, required on 30 June 2020. Show your calculations.

Reference no: EM132794008

Questions Cloud

Cross-cultural differences in leadership : Assume that your boss (real or imagined) has asked you about formal business report on Cross-Cultural Differences in Leadership which will be shared at the next

Qualitative and quantitative risk assessment : What is the difference between qualitative and quantitative risk assessment? Why do we use both and when it is appropriate to use each of these methods

Write an essay in which a certain emotion was predominant : A personal experience that had a strong emotional affect on you will evoke interest and emotion in your reader. Write an essay narrating an experience in which.

What are the major arguments contained within each document : What are the major arguments contained within each of these documents? How do they compare to one another? Are there parallels in their arguments to modern.

Prepare the accounting entries to record the issue : Prepare the accounting entries, including narrations, to record the issue of convertible notes on 30 June 2018 and the interest payment on 30 June 2019

Response planning and contingency planning : What is the difference between response planning and contingency planning? Why are both valuable to project risk management? At least 1 apa style reference

In what ways was garvey a symbol of black pride : Talk about the rise of Negro businesses and their impact on the Black resistance to white supremacist ideologies. What type of businesses developed.

Analysis of bad leadership from a leader : An analysis of bad leadership from a leader (ex. operation manager) - define the leadership approaches, traits, styles, and tasks accomplished/effected within a

Find a song of choice that has a prominent hook and riff : Find a song of choice that has a prominent hook and riff throughout the song. Write 300 words or more on where the hook and riff occur in the piece.

User Account

All Pages