Flavour (Pty) Ltd issued R200 000 12% secured debentures at 105% on 1 July 20x4. Interest

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Flavour (Pty) Ltd issued R200 000 12% secured debentures at 105% on 1 July 20x4.

• Interest is payable twice yearly on 31 December and 30 June.

• The debentures are redeemable at par value in ten years’ time.

• The effective interest rate is 5.58%.

• The company’s financial year end is 30 June.

You are required to:

Prepare the journal entries for the year ended 30 June 20x5. (Narrations are not required.)

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Fundamental Accounting

ISBN: 9781485112112

7th Edition

Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit

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Question Posted: Aug 30, 2023 08:57 AM

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Flavour (Pty) Ltd issued R200 000 12% secured debentures at 105% on 1 July 20x4. Interest

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Fundamental Accounting

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