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Prepare journal entries to record the issue of the debenture

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Point 1: Great Sand Ltd offers $200 million in debentures, which is payable on application. The Interest rate on debentures is 8% per annum, payable annually. By 15 June 2018, applications are received for $240 million debentures. The debentures are allotted on 1 July 2018, which coincides with Great Sand Ltd's financial year-end.

Question 1: Prepare the journal entries to record the issue of the debentures and the annual interest payments on 30th June 2019.

 

Reference no: EM132492499

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