User Account

All Pages

Prepare the journal entries of lid ltd to account for loan

Assignment Help Accounting Basics
Reference no: EM133118142

Question - Lid Ltd made a 2-year loan of $50,000 at 6% interest rate to Carrot Ltd on 1 July 2022. Interest is due at the end of each financial year (30 June), and principal is due on maturity. The financial asset is classified by Lid Ltd as subsequently measured at amortised cost. Lid Ltd applies the general approach to impairment of loan receivable and has classified its loan at stage 1 from inception to maturity. The implicit interest rate is 5%. Lid estimated a 12-month expected credit loss of $5,000.

Required - Prepare the journal entries of Lid Ltd to account for the loan from initial recognition on 1 July 2022 to derecognition on 30 June 2024, assuming the loan is fully paid on maturity.

Reference no: EM133118142

Questions Cloud

Differences between your culture and another culture : Write about similarities and differences between your culture and another culture you are familiar with from your personal experiences.
What is helen contribution margin : Helen's business makes camera equipment that has a variable cost of $400. Helen sells the equipment at a price of $500. What is Helen contribution margin
Explain the possible valuation techniques : Explain the possible valuation techniques that the management of Flemington Ltd could use to fair value the license
What was the effective interest rate on the bonds : Accrued interest was paid in cash at the time of conversion. What was the effective interest rate on the bonds when they were issued
Prepare the journal entries of lid ltd to account for loan : Prepare the journal entries of Lid Ltd to account for the loan from initial recognition on 1 July 2022 to derecognition on 30 June 2024
Discuss how Coles Group can measure : We will inspire customers through best value food and drink solutions to make lives easier - discuss how the logistics performance in exercising
Find the advertising strategy that will meet : The relevant costs are $1,000 per Dispatch ad, $300 per trade magazine ad, and $2,000 per TV ad. Find the advertising strategy that will meet
Collaboration with people at all job levels-communication : Provide relevant knowledge and experience to clients, assist clients in meeting their targeted goals. Collaboration with people at all job levels. Communication
Calculate the amount of equity instrument : Calculate the amount of equity instrument if Smith Ltd needs to record any equity instrument. Give reasons to support your answer

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare journal entries for these transactions using a

the following transactions were incurred by dimasi industries during january 20131. issued 800000 of direct material to

  Prepare an adjusting entry to record accrued salaries

Prepare an adjusting entry to record accrued salaries, a reversing entry on January 1, 2022, and an entry to record the payment of salaries on January 7, 2022

  Identify the types of inventory accounts used by URC

Identify the types of inventory accounts used by URC. Are all these the same or different from what you've learned in the discussions

  Discuss the paid selling expenses

Describe how transactions of Lucent Technologies, Inc., would affect the three elements of the accounting equation.

  Prepare the journal entry to record the redemption

On January 2, 2015, Skysong Corporation issued $1,250,000 of 10% bonds at 97 due December 31, 2024. Prepare the journal entry to record the redemption

  Discuss any line items from the balance sheet

Discuss any line items from the balance sheet that may warrant further investigation from management

  Determine the working capital and quick ratio

For the FY 2016, balance sheet included the following current items: cash $40,000, Determine the Working Capital and Quick Ratio

  Prepare the journal entry to adjust floyd inventory account

Prepare the journal entry to adjust Floyd's Inventory account and any other necessary adjusting journal entry/entries as at December 31, 20x5.

  Difference between perpetual and periodic inventory

Describe the difference between perpetual and periodic inventory

  What was his gross margin for March

Assuming the selling price was $400 per TV and Manav uses the moving-weighted-average method, what was his gross margin for March

  Prepare the sales budget and production budget

Master budget for the year 2019 for Much Better (MBP) Products, Inc. Prepare the following budgets: Sales Budget and Production Budget

  What is the difference between actual and budgeted costs

If Stone had actual overhead costs of $300800 for 11000 units produced, what is the difference between actual and budgeted costs

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd