Make the journal entries to record the financial instrument

Assignment Help Financial Accounting

Reference no: EM132709617

Question 1: Explain what is meant by financial instrument.

Question 1: Outline and describe the three (3) financial risks .

Question 1: Blippi Limited issued 250 000 20% R10 preference shares on the 2 January 2018. The preference shares are convertible into ordinary shares at 1 ordinary share for every 5 preference shares on the 31 December 2020. The conversion is compulsory and the appropriate adjusted market dividend rate for redeemable preference shares is 25%.

Required:

Prepare the journal entries to record the financial instrument for the years ending 31 December 2018, 31 December 2019 and 31 December 2020.

Reference no: EM132709617

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