Reference no: EM132791475
On 1 July 2020, Resolute Ltd issued 2500 convertible notes. The notes have a three-year term and are issued at par with a face value of $1000 per note, giving total proceeds at the date of issue of $2.5 million.
- The notes pay interest at 4% p.a. annually in arrears. The holder of each note is entitled to convert the note into 250 ordinary shares of Resolute Ltd at contract maturity.
When the notes are issued, the prevailing market interest rate for similar debt (similar term, similar credit status of issuer and similar cash flows) without conversion options is 6% p.a. Hence at the date of issue:
Present Value of the principal: $2,099,048
Present Value of the interest: $267,301
Total contractual Cash Flows: $2,366,349
REQUIRED
Problem 1: Use the residual valuation method to determine the amounts of the financial liability and equity components attributable to the issue of convertible notes.
Problem 2: Give a schedule to determine the amortised cost of the financial liability up until their repurchase.
Problem 3: What is the single journal required should holders exercise their conversion option at the expiration of the contract term
Problem 4: Prepare all (inclusive of issue, interest payment and maturity) the journal entries of Resolute Ltd to account for the convertible notes for each year ending 30 June under the following circumstances: i) The holders do not exercise their option and the note is repaid at the end of its term.
|
How they plan for and execute differentiated instruction
: In your building several educators are concerned about how they plan for and execute differentiated instruction.
|
|
What are the healing components of the game
: Consult Urban. Indigenous. Proud: That Old Game La Crosse. How does cultural traditions inform the contemporary game of La Crosse? What does the mythological.
|
|
Who face the misunderstanding of society
: Both The Cuban Swimmer and The Sound of Voice feature characters who face the misunderstanding of their society,
|
|
What was the most significant impact of the war
: Describe Alexander Hamilton's plans to address the nation's financial woes. Which aspects proved most controversial, and why? What elements of the foundation.
|
|
Prepare all the journal entries of resolute ltd
: Prepare all (inclusive of issue, interest payment and maturity) the journal entries of Resolute Ltd to account for the convertible notes for each year
|
|
What conflict management style
: Include an introduction explaining what conflict management style the assessment indicated you have.
|
|
What solutions and conclusions does the author make
: Describe the comparison the author, Cutcha Risling-Baldy, makes between California Indians and the show, "The Walking Dead" in her article.
|
|
Identify part of the book in which you found the information
: Identify and evaluate key figures, events, and themes in the history of the Americas, Europe, and Africa from pre-Columbian times to early European settlement.
|
|
Develop an estimate of fixed electricity costs per month
: Machine hours and electricity costs for Wells Industries for the year 2011 are as follows: Develop an estimate of fixed electricity costs per month
|