Font 24 Paragraph Styles 151511617.8.9. 10. 11. 113. 14 15 16 17 2 b) On 1 October 2020, Kowhai Flowers Ltd, New Zealand company enters a loan agreement with the Bank of Scotond to borrow 2,000,000 for a period of years. The interest on the borrowings is payable half yearly in arrears of the food interest rate of 10% pa, with interest payments due on March and 30 September each year. The functional currency of Kowhai Flowers Ltd is N25 It has reporting periods ending on 31 December and 30 June Applicable exchange rates during the financial period ending 30 June 2021 re as follows 1 Oct 2020 NZ$1=0.42 31 Dec 2020 NZS10.40 31 Mar 2021 NZ$1=0.38 30 June 2021 NZ$10.30 Page 4 of 13 ACC7020 2021 Student ID Number Required: In accordance with NZ IAS 21. prepare the journal entries of Kowhai Flowers Lid to record the borrowing transaction, the borrowing costs expense. the borrowing costs paid and the measurement of the borrowings at the end of the reporting period. Please show all workings (19 mark) Date Accounts Debits Credits I words English (United States 19 . D. Focus m AENG 3:55 21/10 Font 24 Paragraph Styles 151511617.8.9. 10. 11. 113. 14 15 16 17 2 b) On 1 October 2020, Kowhai Flowers Ltd, New Zealand company enters a loan agreement with the Bank of Scotond to borrow 2,000,000 for a period of years. The interest on the borrowings is payable half yearly in arrears of the food interest rate of 10% pa, with interest payments due on March and 30 September each year. The functional currency of Kowhai Flowers Ltd is N25 It has reporting periods ending on 31 December and 30 June Applicable exchange rates during the financial period ending 30 June 2021 re as follows 1 Oct 2020 NZ$1=0.42 31 Dec 2020 NZS10.40 31 Mar 2021 NZ$1=0.38 30 June 2021 NZ$10.30 Page 4 of 13 ACC7020 2021 Student ID Number Required: In accordance with NZ IAS 21. prepare the journal entries of Kowhai Flowers Lid to record the borrowing transaction, the borrowing costs expense. the borrowing costs paid and the measurement of the borrowings at the end of the reporting period. Please show all workings (19 mark) Date Accounts Debits Credits I words English (United States 19 . D. Focus m AENG 3:55 21/10