Create a balance sheet and manage accounting entries, Accounting Basics

Assignment Help:

Two companies enter into loan agreements on 1 March 2012. On that date they also enter into an agreement to swap the loans. The details for each company and loan are:

L R R Hood Ltd   B B Wolf Ltd

US company       US company

Borrows £stg1,500,000   Borrows $US 4,980,080

Interest rate 8 per cent payable annually              Interest rate 11 per cent payable annually

Repayable in £stg             Repayable in $US

Loan repayable in 3 years             Loan repayable in 3 years

Exchange rates:

1 March 2012     $US 1.00 = £stg0.3012

30 June 2012      $US 1.00 = £stg0.2980

The balance date for both companies is 30 June.

Required

What are the accounting entries in the books of L R R Hood Ltd on 1 March and 30 June 2012?


Related Discussions:- Create a balance sheet and manage accounting entries

Describe about ledger, Q. Describe about ledger? A ledger (general ledg...

Q. Describe about ledger? A ledger (general ledger) is the absolute collection of all the accounts of a company. The ledgers are feasibly in a bound volume in, loose-leaf form

What is uses of purchases journal, What is uses of Purchases journal ...

What is uses of Purchases journal Purchases journal (SPECIAL JOURNAL) Used to record only credit purchases of merchandise-may be only one column which is posted to two accou

Example of net realizable value, Example of net realizable value? To ex...

Example of net realizable value? To exemplify a necessary write-down in the cost of inventory presume that an automobile dealer has a demonstrator on hand. The dealer obtained

Explain double-entry procedure, Q. Explain double-entry procedure? The ...

Q. Explain double-entry procedure? The double-entry procedure maintains the accounting equation in balance. The dual recording process generates two sets of accounts those with

Taxation 1, How are gains from the sale of § 1244 stock treated? Gains on ...

How are gains from the sale of § 1244 stock treated? Gains on the sale of § 1244 stock is treated as

Quote, Hi I need a quote for an assingment. How do I submit it to you?

Hi I need a quote for an assingment. How do I submit it to you?

Explain both management accounting and financial accounting, Management acc...

Management accounting and financial accounting Accounting is generally seen as having two different strands which are: ? Management accounting that seeks to meet accounting

Biology, While studying evolution, a student comes across a cladogram that ...

While studying evolution, a student comes across a cladogram that includes clades like amphibia, reptilia, aves, and mammalia. What must be the basal clade?

Preoaration of journal entries for partnership liquadation.., tugade ,masin...

tugade ,masinsin and biore are all famous athletes who have been operating a sports memorabilia store for how many years .The partnership decided to liquadate its operation rather

T-Accounts, How would I plot these problems in a T-account? d. received app...

How would I plot these problems in a T-account? d. received applications from three students for a 4-week secretarial program and 2-students for a ten day keyboarding course. The s

Write Your Message!

Captcha
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!

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