The following were among transactions of Raven Industries Ltd during the financial years ending 30 June 2017
Question:
The following were among transactions of Raven Industries Ltd during the financial years ending 30 June 2017 and 30 June 2018.
2017 | |||||
March May June July | 1 30 1 31 | Raven Industries Ltd discounted its own 90-day bill of exchange made out to the International Bank. The face value of the bill was $360000 and the bill was discounted at 10% p.a. Paid the International Bank the amount due on the bill. Raven Industries Ltd discounted a further 60-day bill, made out to Gold Bank for $150 000 at a discount rate of 8% p.a. Raven Industries Ltd honoured its bill drawn on Gold Bank. | |||
Required
Record in general journal form all the above transactions, including any end-of-period adjustments required at 30 June 2017.
Discount RateDepending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
Step by Step Answer:
2017 Mar 1 Cash at Bank 351 12329 Unexpired Interest 8 87671 Bills Payable ...View the full answer
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
