Thompson Ltd issued $4 000 000, 9%, 20-year debentures at par (face) value on 1 July 2015.

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Thompson Ltd issued $4 000 000, 9%, 20-year debentures at par (face) value on 1 July 2015. The debentures were dated 1 July 2015, and pay interest on 30 June and 31 December. Thompson’s year-end is 30 June.

Required

(a) Prepare the journal entry to record the issue of the debentures on 1 July 2015.

(b) Prepare entries for the interest payments on 31 December 2015 and 30 June 2016.

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Financial Accounting Reporting Analysis And Decision Making

ISBN: 9780730313748

5th Edition

Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong

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Question Posted: Sep 09, 2022 01:46 AM

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Thompson Ltd issued $4 000 000, 9%, 20-year debentures at par (face) value on 1 July 2015.

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a To record the issue of the debentures on 1 July 2015 Debit Cash 4000000 Credit Debentures Payab...View the full answer

Financial Accounting Reporting Analysis And Decision Making

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