Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - On 1 July 2020, Gerald Ltd issues 2,000 convertible notes. The notes have a three-year term and are issued at par with a face value of $1,000 per note, giving total proceeds at the date of issue of $2 million. The notes pay interest at 6% p.a. annually in arrears. The holder of each note is entitled to convert the note into 200 ordinary shares of Gerald 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 8% per annum.
Required -
a) Calculate a effective interest schedule and distinguish between the allocation of interest payments and interest expense for each reporting period during the term of the note issue.
b) Prepare the journal entries of Gerald Ltd to account for the convertible notes for each year ending 30 June under the following circumstances.
What economic effects will the limit have on consumers and on pharmacists? Which group is likely to be the more effective advocate for its position?
Prepare a monthly manufacturing overhead flexible budget for each increment of 3,000 direct labor hours over the relevant range for the year ending December 31, 2014.
Determine the maximum amount of 2018 personal tax credits, including transfers from a spouse or dependant, that can be applied against federal Tax
Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 13.50%, with interest paid monthly, what is the card's EFF%?
Discuss the concepts that were examined in class. The points earned depend on the depth of the discussion of the dividend policy for Starbuck
You want to start a restaurant business. Your initial investment is $10,000, borrowed at 4% annual rate. Your cash flow for (at the end of) years 1,2,3,4 and 5 are respectively $2400, $3100, $2100, $4300 and $5000. Using Present worth analysis, deter..
Ron and Gail are going to invest some of their $$$$ for two years from January 1 2016 to December 31, 2017. Show the net return will give in 2017 considering expenses, annual compounding of interest/appreciation, timing of income and of tax payment, ..
Give the entry to record (a) the sale of the season tickets and (b) the revenue recognized after playing the first home game
Many firms issue debt to finance their stock repurchases. Issuing debt is another controversial topic.
Fatimah and Ahmad, who make $50,000 per year, calculated their average tax rate at 20 percent. They contribute 15 percent of their income to charity and pay themselves 10 percent of their income. They have 25 years and $100,000 remaining on their 6-p..
Barcain Credit Corp. wants to earn an effective annual return (EAR) on its consumer loans of 12 percent per year. If the bank uses daily compounding on its loans, what APR is the bank required to report (quote) to potential borrowers?
Assuming an annual interest rate of 12% for all years throughout the future, for how many years will the firm be able to make the annual payments of $4,000,000?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd