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Prepare journal entries to show the necessary workings

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Question - A company issues 6% debenture with a nominal value of $33,000,000, which be repayable after three years at a 15% premium. The debenture were issued at a 3.8% discount, with issue costs of $1,016,000 incurred. The effective rate of interest is 13.32%.

-Prepare journal entries to show the necessary workings.

-Show the full amortization of the three -year period.

-What amount will be shown in the statement of profit or loss and statement of financial position for one year?

Reference no: EM133005726

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