Exercise 10-20 Accounting for long-term liabilities under IFRS LO C1 Heineken NV. reports the following information for its Loans and Borrowings as of December 31, 2015, including proceeds and repayments for the year ended December 31, 2015 (euros in millions) Loans and borrowings (noncurrent liabilities) Loans and borrowings, December 31, 2015 Proceeds (cash) from issuances of loans and borrowings Repayments (in cash) of loans and borrowings 10,658 1,888 (1,753) chproceds fom s fr5.ssume ther the par value of these issuances is 1,900 2. Prepare Heineken's journal entry to record its cash repayments of its loans and borrowings for 2015. Assume that the par value of these issuances is 1,700, and the premium on them is 24 3. Compute the discount or premium on its loans and borrowings as of December 31, 2015, assuming that the par value of these liabilities is 10,000. 4. Given the facts in part 3 and viewing the entirety of loans and borrowings as one issuance, was the contract rate on these loans and borrowings higher or lower than the market rate at the time of issuance? (Assume that Heineken's credit rating has remained the same.) Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Required 4 Prepare Heineken's journal entry to record its cash proceeds from issuances of its loans and borrowings for 2015. Assume that the par value of these issuances is 1,900. (Enter your answers in millions.) View transaction list Journal entry worksheet Record the cash proceeds from issuances of loans and borrowings for 2015 Assume that the par value of these issuances is 1,900 Note: Enter debits before credits. Debit General Journal Credit ransaction Record entry Clear entry View general journal Required 1 Required 2 > Required 1 Required 2 Required 3 Required4 Prepare Heineken's journal entry to record its cash repayments of its loans and borrowings for 2015. Assume that the par value of these issuances is 1,700, and the premium on them is 24. (Enter your answers in millions.) View transaction list Journal entry worksheet Record the cash repayments of loans and borrowings for 2015. Assume that the par value of these issuances is 1,700 and premium on them is 24. Note: Enter debits before credits. DebitCredit Transaction General Journal Record entry Clear entry View general journal Required 3> K Required 1 Required 1 Required 2 Required 3 Required 4 Compute the discount or premium on its loans and borrowings as of December 31, 2015, assuming that the par value of these liabilities is 10,000. (Enter your answer in millions.) million Required 2 Required 4 > Required 1 Required 2Required 3 Required 4 Given the facts in part 3 and viewing the entirety of loans and borrowings as one issuance, was the contract rate on these loans and borrowings higher or lower than the market rate at the time of issuance? (Assume that Heineken's credit rating has remained the same.) The contract rate is higer or lower than the market rate at the time of issuance Required 3
