Question
On 1 July 2016, FBI Limited issued a 10-year debenture of $200000 at a price of 93.496, stated interest rate of 8%, payable half-yearly. The
On 1 July 2016, FBI Limited issued a 10-year debenture of $200000 at a price of 93.496, stated interest rate of 8%, payable half-yearly.
The half-yearly interest dates are 1 July and 31 December. The market interest rate is 9%. FBI Limited amortises the company liabilities using the effective interest rate method. The company's financial year ends on 30 September.
Required:
Journalise the above transactions up to 31 December 2016 (including the relevant adjusting entries for the financial year-end 30 September 2016).
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Police Auditing Standards And Applications
Authors: Allan Y. Jiao
2nd Edition
0398090750, 978-0398090753
