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On 1 July 2017 Kiama Ltd issues $2 million in six-year debentures that pay interest each six months at a coupon rate of 8 per
On 1 July 2017 Kiama Ltd issues $2 million in six-year debentures that pay interest each six months at a coupon rate of 8 per cent, commencing 31 December 2017. At the time of issuing the securities, the market requires a rate of return of 6 per cent. Interest expense is determined using the effective interest method.
Required:
Provide journal entries at the following dates (Note: narrations are not required):
1 July 2017
30 June 2018
30 June 2023
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