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Prepare the journal entry to record the issuance

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Question - On January 1, 2020, Culumber Corp. issued $1,130,000 of five-year, zero-interest-bearing notes along with warrants to buy 1,060,000 common shares at $22 per share. On January 1, 2020, Cullumber had 9.3 million common shares outstanding and the market price was $21 per share. Cullumber Corp. received $1,060,000 for the notes and warrants. If offered alone, on January 1, 2020, the notes would have been issued to yield 12% to the creditor. Assume that the company follows IFRS. Prepare the journal entry to record the issuance of the zero-interest-bearing notes and warrants for the cash consideration that was received.

Reference no: EM133074431

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