Homework Answers
Answer :
In above question it has been mentioned that Saucy's management neither expect to actively trade the debentures nor they expect to hold all of them till maturity.
Because management can sell some debentures to generate cash for liquidity purpose, the debentures would be classified as available for sale securities.
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Can I please get help with the classification of the
debentures.
Saucy Ltd ("Saucy') is a...
Question 4 On 1 January 2015, Vivek plc issued 50,000, £100 2 per cent debentures to...
Question 4 On 1 January 2015, Vivek plc issued 50,000, £100 2 per cent debentures to investors for £55 each. The debentures are redeemable at their par value of £100 in five years’ time, 31 December 2019. The interest rate implicit for the debenture is 15.62% per annum. a) In accordance with IAS 39 Financial Instruments: Recognition and Measurement: Calculate the finance cost for Vivek plc in respect of the financial instrument, for each of the five years ended December...
Part a Donahue Ltd purchased a plant on 1 July 2018 for N$300 000. The entity...
Part a Donahue Ltd purchased a plant on 1 July 2018 for N$300 000. The entity incurred transfer fees of N$90 000. The expected dismantling cost at the end of the useful life of the plant is N$200 000. The applicable discount rate after tax (tax rate 25.75%) 6.3% Useful life 12 years The plant is erected on rented premises and the rental agreement requires dismantling of the plant at the end of its useful life. Assume that Inland Revenue...
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...
Can i please ger help with this entire question. i need detailed calculations and explanations th...
can i please ger help with this entire question. i need
detailed calculations and explanations
thank you
Please note: Added Tax (VAT) implications Ignore any normal income tax, as well as any Value Round off all amounts to the nearest Rand, and any percentages to two decimals. our answer must comply with International Financial Reporting Standards (IFRS). Part B Stimel generate rental income for the business. The cost price paid for the office building in cash R600 000 and the...
On 1 July 2017, Parent Ltd acquired all the shares of Son Ltd, on a cum-div....
On 1 July 2017, Parent Ltd acquired all the shares of Son Ltd, on a cum-div. basis, for $3,230,000. At this date, the equity of Son Ltd consisted of: $1,200,000 Share capital -600 000 shares General reserve Retained earnings 500,000 900,000 At the acquisition date, Son Ltd reported a dividend payable of $50,000 and its assets included $100, 000 of recorded goodwill. The dividend payable at the acquisition date was subsequently paid in August 2017. On 1 July 2017, all...
You are provided with the information for Mwape Mulenga and co. Ltd at 31 December 2018:...
You are provided with the information for Mwape Mulenga and co. Ltd at 31 December 2018: к Ordinary share capital (K500 shares) 5% preference share capital K100 shares Freehold land and buildings at cost Provision for depreciation - buildings Debtors Creditors Cash at bank Stock at 14 January 2018 Sales Discounts allowed Discounts received Purchases Carriage inwards Carriage outwards 10% debentures Debenture interest paid Administrative expenses Salaries (excluding directors) Preference dividend paid Retained Earnings b/f 120 000 40 000 460...
QUESTION ONE PART A New Century Equipment Ltd offers a 12-month warranty for the sale of...
QUESTION ONE PART A New Century Equipment Ltd offers a 12-month warranty for the sale of used equipment. On 1 July 2015, there was a credit balance of $95 000 in its Warranty Provision account. During the year ended 30 June 2016, New Century Equipment Ltd incurred $105 000 in warranty costs, of which $55 000 was in the form of inventory and $50 000 was for labour costs. At 30 June 2016, New Century Equipment Ltd estimated its liability...
QUESTION On 1 January 2019, Walkinson Ltd entered into a 6-year contract to lease a crane...
QUESTION On 1 January 2019, Walkinson Ltd entered into a 6-year contract to lease a crane for its freight terminal. When negotiating the lease contract, on 1 January 2019, Walkinson Ltd paid direct costs of $20,000 for technical advice from an engineering consultancy. The lease contract requires Walkinson Ltd to make 6 annual lease payments of $60,000, commencing on 30 June 2019. The lease contract includes a bargain purchase option, (which Walkinson Ltd is expected to exercise), to purchase the...
Part a Donahue Ltd purchased a plant on 1 July 2018 for N$300 000. The entity incurred transfer fees of N$90 000. The expected dismantling cost at the end of the useful life of the plant is N$200 000. The applicable discount rate after tax (tax rate 25.75%) 6.3% Useful life 12 years The plant is erected on rented premises and the rental agreement requires dismantling of the plant at the end of its useful life. Assume that Inland Revenue...
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...
can i please ger help with this entire question. i need
detailed calculations and explanations
thank you
Please note: Added Tax (VAT) implications Ignore any normal income tax, as well as any Value Round off all amounts to the nearest Rand, and any percentages to two decimals. our answer must comply with International Financial Reporting Standards (IFRS). Part B Stimel generate rental income for the business. The cost price paid for the office building in cash R600 000 and the...
On 1 July 2017, Parent Ltd acquired all the shares of Son Ltd, on a cum-div. basis, for $3,230,000. At this date, the equity of Son Ltd consisted of: $1,200,000 Share capital -600 000 shares General reserve Retained earnings 500,000 900,000 At the acquisition date, Son Ltd reported a dividend payable of $50,000 and its assets included $100, 000 of recorded goodwill. The dividend payable at the acquisition date was subsequently paid in August 2017. On 1 July 2017, all...
You are provided with the information for Mwape Mulenga and co. Ltd at 31 December 2018: к Ordinary share capital (K500 shares) 5% preference share capital K100 shares Freehold land and buildings at cost Provision for depreciation - buildings Debtors Creditors Cash at bank Stock at 14 January 2018 Sales Discounts allowed Discounts received Purchases Carriage inwards Carriage outwards 10% debentures Debenture interest paid Administrative expenses Salaries (excluding directors) Preference dividend paid Retained Earnings b/f 120 000 40 000 460...
QUESTION ONE PART A New Century Equipment Ltd offers a 12-month warranty for the sale of used equipment. On 1 July 2015, there was a credit balance of $95 000 in its Warranty Provision account. During the year ended 30 June 2016, New Century Equipment Ltd incurred $105 000 in warranty costs, of which $55 000 was in the form of inventory and $50 000 was for labour costs. At 30 June 2016, New Century Equipment Ltd estimated its liability...
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