Find the debt and equity components of the convertible

Assignment Help Financial Accounting
Reference no: EM132552018

Convertible notes issue including financial liability at amortized cost

On 1 July 2015 Sunshine Ltd issues convertible notes with a face value of $20 million. The convertible notes have a 12-year term and mature on 30 June 2027. Interest is payable semi annually in arrears, 30 December and 30 June each year. The coupon rate of interest is 12% annually. At around the same point in time, companies with a similar credit rating issue debt security without a conversion option with a coupon rate of 16% payable annually.

Require

Question 1: Determine the debt and equity components of the convertible notes issued using the residual valuation method.

Question 2: Prepare an amortisation table of the convertible note liability for the period 1 July 2015 to 30 June 2018

Question 3: Prepare the entries of Sunshine Ltd to account for the convertible notes over the period 1 July 2015 to 30 June 2018.

Reference no: EM132552018

Questions Cloud

Prepare the lease payments schedule for indiana ltd : Prepare the lease payments schedule for Indiana Ltd. Indiana Ltd decided to lease from Jones Ltd a car that had a fair value at 30 June 2019 of $38 960.
Competitive advantage over a long period : What factor go into a company failing to maintain their competitive advantage over a long period after they have gained it.
Patient room performing a procedure : You are in a patient's room performing a procedure. The patient, who has a type of cancer that is always fatal, has been told
Find and calculate the annual and cumulative remuneration : Find and Calculate the annual and cumulative remuneration expense to be recognized by Callala Bay Ltd for 2019? Accounting for share based payment
Find the debt and equity components of the convertible : Prepare amortisation table of convertible notes. Determine the debt and equity components of convertible notes issued using the residual valuation method.
Blockchain-big data-government and policies : Discuss role government plays in a global economy. Also, look at what policies are currently in place and then discussion what policies should be put in place.
Mission of an organization : How do you think about an employee culture of working towards the mission of an organization?
Relevance of external and internal audit : Explain the relevance of external and internal audit for the process of strategic management?
Methods of improving the effectiveness of change efforts : The methods of improving the effectiveness of change efforts include: 3 responses

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd