Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you please solve this question as fast as you can On January 1, 2020, Kiju Corp. issued $1.1 million of five-year, zero-interest-bearing notes along

image text in transcribed

can you please solve this question as fast as you can

On January 1, 2020, Kiju Corp. issued $1.1 million of five-year, zero-interest-bearing notes along with warrants to buy 1 million common shares at $22 per share. On January 1, 2020, Kiju had 9.3 million common shares outstanding and the market price was $21 per share. Kiju Corp. received $1 million for the notes and warrants. If offered alone, on January 1, 2020, the notes would have been issued to yield 11% to the creditor. Assume that the company follows IFRS. Answer the following questions, rounding all numbers to the nearest dollar. a. Prepare the journal entry(ies) to record the issuance of the zero-interest-bearing notes and warrants for the cash consideration that was received. b. Prepare an amortization table for the notes using the effective interest method. c. Prepare adjusting journal entries for Kiju Corp. at the end of its fiscal year of December 31, 2020. d. Prepare the journal entry required for Kiju Corp. if a quarter of the warrants are exercised on January 1, 2023

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Textbook Of Financial Accounting And Analysis

Authors: Gaurav Agrawal

1st Edition

9350840901, 9789350840900

More Books

Students also viewed these Accounting questions

Question

2. What are the prospects for these occupations?

Answered: 1 week ago