Homework Answers
| The loan note appear in the statement of financial position as at 31 March 20X2: $21,495,000 | ||
| Proceed (20m - 0.5m) | $19,500,000 | |
| Interest 10% | $1,950,000 | |
| Interest paid (20m × 5%) | ($1,000,000) | |
| $20,450,000 | ||
| Interest 10% | $2,045,000 | |
| Interest paid | ($1,000,000) | |
| 21,495,000 | ||
Add Answer to:
3) A 5% loan note was issued on 1 April 20X0 at its face value of...
4) An 8% $30 million convertible loan note was issued on 1 April 20X5 at par....
4) An 8% $30 million convertible loan note was issued on 1 April 20X5 at par. Interest is payable in arrears on 31 March each year. The loan note is redeemable at par on 31 March 20X8 or convertible into equity shares at the option of the loan note holders on the basis of 30 shares for each $100 of loan. A similar instrument without the conversion option would have an interest rate of 10% per annum. The present values...
Harrison Ltd. issued $4,000,000 of bonds payable on 30 April 20X0. The bonds are due on...
Harrison Ltd. issued $4,000,000 of bonds payable on 30 April 20X0. The bonds are due on 30 April 20X8, and bear interest at 4.5% per annum, payable every 30 October and 30 April. The bonds were issued to yield 5% per annum. Harrison's fiscal year ends on 31 December. Harrison uses the effective interest method of amortization. (PV of $1. PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the proceeds from...
Milk Ltd has the following financial instrument issued: 1) On 1 April 2018 an 8% £30...
Milk Ltd has the following financial instrument issued: 1) On 1 April 2018 an 8% £30 million convertible loan note was issued at par. Interest is payable in arrears on 31 March each year. The loan note is redeemable at par on 31 March 2021 or convertible into equity shares at the option of the loan note holders on the basis of 30 shares for each £100 of loan. A similar instrument without the conversion option would have an interest...
Milk Ltd has the following financial instrument issued: 1) On 1 April 2018 an 8% £30...
Milk Ltd has the following financial instrument issued: 1) On 1 April 2018 an 8% £30 million convertible loan note was issued at par. Interest is payable in arrears on 31 March each year. The loan note is redeemable at par on 31 March 2021 or convertible into equity shares at the option of the loan note holders on the basis of 30 shares for each £100 of loan. A similar instrument without the conversion option would have an interest...
Milk Ltd has the following financial instrument issued: 1) On 1 April 2018 an 8% £30...
Milk Ltd has the following financial instrument issued: 1) On 1 April 2018 an 8% £30 million convertible loan note was issued at par. Interest is payable in arrears on 31 March each year. The loan note is redeemable at par on 31 March 2021 or convertible into equity shares at the option of the loan note holders on the basis of 30 shares for each £100 of loan. A similar instrument without the conversion option would have an interest...
On January 1, 2018, Reese Incorporated issued bonds with a face value of $300,000, a stated...
On January 1, 2018, Reese Incorporated issued bonds with a face value of $300,000, a stated rate of interest of 8 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 7 percent at the time the bonds were issued. The bonds sold for $312,300. Reese used the effective interest rate method to amortize bond premium. Required Prepare an amortization table. What item(s) in the table...
Jessie Co. issued an $8 million face amount of 9%, 30-year bonds on April 1, 2019....
Jessie Co. issued an $8 million face amount of 9%, 30-year bonds on April 1, 2019. The bonds pay interest on an annual basis on March 31 each year. Calculate the interest expense that Jessie Co. will show with respect to these bonds in its income statement for the fiscal year ended September 30, 2019, assuming that the premium of $68,000 is amortized on a straight-line basis. What is the Accrued interest payable? Premium amortization? Interest expense for 6 months?...
On January 1, 2018, Reese Incorporated issued bonds with a face value of $260,000, a stated...
On January 1, 2018, Reese Incorporated issued bonds with a face
value of $260,000, a stated rate of interest of 8 percent, and a
five-year term to maturity. Interest is payable in cash on December
31 of each year. The effective rate of interest was 7 percent at
the time the bonds were issued. The bonds sold for $270,660. Reese
used the effective interest rate method to amortize bond
premium.
Required
Prepare an amortization table.
What item(s) in the table...
In order to take advantage of lower U.S. interest rates, Zhang Ltd. borrowed $6 million from...
In order to take advantage of lower U.S. interest rates, Zhang Ltd. borrowed $6 million from a U.S. bank on 1 May 20X2. Annual interest, at 7 1/4%, was due each subsequent 1 May, with lump-sum principal due on 1 May 20X5. Zhang Ltd. has a 31 December year-end. Exchange rates were as follows: 1 May 20x2 31 December 20x2 1 May 20x3 31 December 20x3 Average, 1 May 20X2 - 31 December 20x2 Average, 1 January 20x3 - 31...
On January 1, 2018, Reese Incorporated issued bonds with a face value of $270,000, a stated...
On January 1, 2018, Reese Incorporated issued bonds with a face value of $270,000, a stated rate of interest of 8 percent, and a five- year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 7 percent at the time the bonds were issued. The bonds sold for $281,070. Reese used the effective interest rate method to amortize bond premium. Required a. Prepare an amortization table b. What item(s)...
4) An 8% $30 million convertible loan note was issued on 1 April 20X5 at par. Interest is payable in arrears on 31 March each year. The loan note is redeemable at par on 31 March 20X8 or convertible into equity shares at the option of the loan note holders on the basis of 30 shares for each $100 of loan. A similar instrument without the conversion option would have an interest rate of 10% per annum. The present values...
Harrison Ltd. issued $4,000,000 of bonds payable on 30 April 20X0. The bonds are due on 30 April 20X8, and bear interest at 4.5% per annum, payable every 30 October and 30 April. The bonds were issued to yield 5% per annum. Harrison's fiscal year ends on 31 December. Harrison uses the effective interest method of amortization. (PV of $1. PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the proceeds from...
Milk Ltd has the following financial instrument issued: 1) On 1 April 2018 an 8% £30 million convertible loan note was issued at par. Interest is payable in arrears on 31 March each year. The loan note is redeemable at par on 31 March 2021 or convertible into equity shares at the option of the loan note holders on the basis of 30 shares for each £100 of loan. A similar instrument without the conversion option would have an interest...
Milk Ltd has the following financial instrument issued: 1) On 1 April 2018 an 8% £30 million convertible loan note was issued at par. Interest is payable in arrears on 31 March each year. The loan note is redeemable at par on 31 March 2021 or convertible into equity shares at the option of the loan note holders on the basis of 30 shares for each £100 of loan. A similar instrument without the conversion option would have an interest...
Milk Ltd has the following financial instrument issued: 1) On 1 April 2018 an 8% £30 million convertible loan note was issued at par. Interest is payable in arrears on 31 March each year. The loan note is redeemable at par on 31 March 2021 or convertible into equity shares at the option of the loan note holders on the basis of 30 shares for each £100 of loan. A similar instrument without the conversion option would have an interest...
On January 1, 2018, Reese Incorporated issued bonds with a face
value of $260,000, a stated rate of interest of 8 percent, and a
five-year term to maturity. Interest is payable in cash on December
31 of each year. The effective rate of interest was 7 percent at
the time the bonds were issued. The bonds sold for $270,660. Reese
used the effective interest rate method to amortize bond
premium.
Required
Prepare an amortization table.
What item(s) in the table...
In order to take advantage of lower U.S. interest rates, Zhang Ltd. borrowed $6 million from a U.S. bank on 1 May 20X2. Annual interest, at 7 1/4%, was due each subsequent 1 May, with lump-sum principal due on 1 May 20X5. Zhang Ltd. has a 31 December year-end. Exchange rates were as follows: 1 May 20x2 31 December 20x2 1 May 20x3 31 December 20x3 Average, 1 May 20X2 - 31 December 20x2 Average, 1 January 20x3 - 31...
On January 1, 2018, Reese Incorporated issued bonds with a face value of $270,000, a stated rate of interest of 8 percent, and a five- year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 7 percent at the time the bonds were issued. The bonds sold for $281,070. Reese used the effective interest rate method to amortize bond premium. Required a. Prepare an amortization table b. What item(s)...
Most questions answered within 3 hours.
-
For 1 through 11, create an expression using the relational
operators, the logical operators, and variable...
asked 3 minutes ago -
The production budget for Manner Company shows units to be
produced as follows: July, 550; August,...
asked 7 minutes ago -
Your group is required to develop a comprehensive Business plan
that will be used as a...
asked 11 minutes ago -
a radio station transmits at 78.1 mhz. a hz is an inverse
second. how far apart...
asked 29 minutes ago -
Write the equilibrium expression for the dissociation in
water for CH5N, C2H5O2COOH, H3AsO4, KClO2, HC2H2ClO2.
asked 35 minutes ago -
In risk management, insurance is an example of:
Select one:
a. Risk avoidance
b. Risk deflection...
asked 37 minutes ago -
Wildhorse Company follows the practice of pricing its inventory
at the lower-of-cost-or-market, on an individual-item
basis....
asked 1 hour ago -
3. (10 pts) You grow a corn crop that yields 150 bushels ac-1,
with the following...
asked 1 hour ago -
7. The term Six Sigma refers to:
Select one:
a. The control limits established in a...
asked 1 hour ago -
For the following reaction: A(g) + 2 B(g) ⇌ 2 C(g) Calculate the
equilibrium constant K...
asked 1 hour ago -
Which of the following best describes tidal volume? options:
1.The amount of oxygen in the air...
asked 1 hour ago -
1. Smaller cost distortions occur when the traditional systems'
single indirect-cost rate and the activity-cost-driver rates:...
asked 1 hour ago