Great Sand Ltd offers $200 million in debentures, which is payable on application. The Interest rate on debentures is 8% per annum, payable annually. By 15 June 2018, applications are received for $240 million debentures. The debentures are allotted on 1 July 2018, which coincides with Great Sand Ltds financial year-end.

Required:

Prepare the journal entries to record the issue of the debentures and the annual interest payments on 30th June 2019.