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12:07 Search et 4G please help! :( On 1 April 2018, Shen Ltd acquired specialised equipment by issuing $2,700,000 of face value, 9% ten-year bonds

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12:07 Search et 4G please help! :( On 1 April 2018, Shen Ltd acquired specialised equipment by issuing $2,700,000 of face value, 9% ten-year bonds to the equipment's manufacturer. No cash changed hands. The bonds will pay interest semi-annually beginning with the first payment due on 1 October 2018. The market interest rate on the issue date was 10%. The equipment, which was available for use immediately, will be depreciated under the declining balance method at 30%. The estimated residual value is $200,000. Ignore GST. Round to two decimal places Required: & Prepare the journal entry for equipment purchase hond issuance on 1 April 2018 1. Shen Lid adjusts and closes its books annually on 31 July Prepare Shen Lad's two required adjusting journal entries on that date. For depreciation purposes, you may use a con figure of $2,500,000 c. Prepare the journal entry for the fiest payment due on October 2018 d. On 1 April 2019, after the interest was paid Shen Lid and the equipment manufacturer agreed that the bonds would be redeemedata market price of 93. i. Prepare the journal entry to record the redemption (Assume that Shen Lid's carrying value for the bonds on the redemption date was $2,542,491.) ii. At a market price of 93, was the market interest rate on the date of redemption greater than, less than or equal to 99 Explain your answer c. Assume the redemption resulted in again for Shen Lid. You have been asked to help assess the immediate impact of the redemptionen Shen Lid's return on asset ratio. In your answer, first identify the numerator and denominator of the ratio then explain the impact, if any, on the numerato finally explain the impact, if any, on the denominate Then conclude as to the overall effect Ignored) above and assume Shen Lid will redeem the bonds at maturity. 1. How much interest expense will be recognised over the life of the bonds? 1. Why isn't the total amount of interest expense shown as a liability on 1 April 2018, given that it is highly probable that Shen Lid will pay relevance and the amount can be measured without error (faithful representation

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