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Problem - Amman Company prepares its financial statements on 30/4. On 1/5/2017 the company issues $750000 of 3% loan stock at $800000 with issue cost $100675. Interest is payable on 30/4 each year and the stock is redeemable on 30/4/2021 at $825000. The effective rate of interest is 7.25% yearly.
Required -
What the amount of stock that should be measured on the date of issue.
What the amount of stock that should be shown in Amman financial statements during the stock life.
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