Solution-Record the issuance of the bonds and warrants

Record the issuance of the bonds and warrants

Assignment Help Accounting Basics

Reference no: EM132709599

Problem - Sunland Capital Ltd. issued 540 $1,000 bonds at 101. Each bond was issued with 10 detachable stock warrants. After issuance, similar bonds were sold at 98, and the warrants had a fair value of $2.70.

Required - Record the issuance of the bonds and warrants assuming that Sunland Capital follows IFRS.

(i) Assuming that Sunland Capital follows ASPE (residual value method), record the issuance of the bonds and warrants assuming that the debt is the more easily measurable component.

(ii) Assuming that Sunland Capital follows ASPE (residual value method), record the issuance of the bonds and warrants assuming that the equity is the more easily measurable component.

Reference no: EM132709599

Questions Cloud

Understanding of incentives and values in workplace : What are the biggest challenges to motivating employees in public sector (government)?

Handle cultural issues related to the integration : Mergers and acquisitions are seen with many companies today. Assume that a company just purchased by a rival company. Someone has been placed on the integration

Why income dropped if expenses decreased : Why income dropped if expenses decreased. According to the Panasonic Corp. income statement, it has operating expenses that decreased from 1,865,854,000

Case study-missile financial services : Joseph and Krystal are part of your social group. They joined Missile's Financial Services together as middle managers. Each of them reports to a different seni

Record the issuance of the bonds and warrants : Assuming that Sunland Capital follows ASPE (residual value method), record the issuance of the bonds and warrants assuming that the debt is the more easily

What conditions a tax preference for share repurchase : What conditions would there be a tax preference for share repurchase rather than dividends? Would managers acting in the interests of long-term

Prepare the statement of financial position extract at dec : Calculate the impairment loss and prepare the statement of financial position extract at 31st December x4, assuming that Alaba Bhd's pre-tax cost of capital

Creating a more inclusive workplace : What challenges do the following statements present to organizations that are working at creating a more inclusive workplace:

Calculate the issue price of the debentures : Calculate the issue price (fair value) of the debentures and provide the accounting journal entries for 30 June 2019, 31 December 2019 and 30 June 2020

User Account

All Pages

Record the issuance of the bonds and warrants

Reference no: EM132709599

Reference no: EM132709599

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT