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Provide the accounting journal entries to record funds

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Question - Star Limited issues $5 million of two year, 8 per cent, semi-annual coupon debentures to the public (which pay interest each 6 months). The financial market also requires a rate of return of 8 per cent. You can assume that the money comes in and the debentures are allotted on the same day, 30 June 2020.

Required - Provide the accounting journal entries to record:

(a) The receipt of funds and allotment of debentures on 30 June 2020.

(b) The payment of interest on 31 December 2020.

(c) The redemption of the debentures on 30 June 2022.

Reference no: EM132631326

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