User Account

All Pages

Prepare the journal entry to record transaction

Assignment Help Financial Accounting
Reference no: EM132963565

QUESTION - Sojourn Limited issued 75 000 debentures on 1 January 2019 at their face value of R7 each which was their fair value on issue date. The debentures offered interest based on a coupon rate of 10%. The following additional information is available.

The debenture holder has the option to convert the debentures on 31 December 2021 into 750 ordinary shares. If they are not converted, they will be redeemed on this date at R7 each.

The market interest rate for similar debt but without the option to convert is 15%.

The debentures are not held for trading.

REQUIRED - Prepare the journal entry to record transaction as at the 1 January 2019. Please show all workings. Marks will be allocated for workings. Journal entry must include narration.

Reference no: EM132963565

Questions Cloud

What will the overall tax rate be : What will the overall tax rate be if Tio instructed Ecuador to increase the price it charged Taiwan for each widget to $80 per unit
Explain the characteristic of free from error : Question - Explain the concept of substance over form. Explain the characteristic of "free from error". Explain the concept of conservatism
Data analysis and visualisation presentation : Critically analyse and interpret data analytics, its principles and tools for organisational problem solving and Effectively report and communicate findings
Compute breakeven point in units for April : TodoLimpio Company expects to produce 4,500 washers and sell 4,000 washers in April 2021. Compute breakeven point in units for April
Prepare the journal entry to record transaction : The market interest rate for similar debt but without the option to convert is 15%. Prepare the journal entry to record transaction
What will average inventory have : If sales volume and unit cost remain the same this year as last and inventory turnover is 8 this year, what will average inventory have
Define qualitative characteristics of financial statements : Define qualitative characteristics of financial statements. Explain the qualitative characteristic of relevance. Explain enhancing qualitative characteristics
Explain materiality in relation to relevance. : Explain the "could reasonably to expected to influence" threshold for materiality. Explain materiality in relation to relevance
Primary benefits of a diverse organization : Diversity presents both challenges and opportunities for any organization? Explain briefly

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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