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On 1 July 2021, Stay Puft Corporation made a loan of $1,000,000 to Bluth Ltd, incurring transaction costs of $6,340.The terms of the loan were
On 1 July 2021, Stay Puft Corporation made a loan of $1,000,000 to Bluth Ltd, incurring transaction costs of $6,340.The terms of the loan were as follows: Period: 4 years due in full on 30/6/25. Coupon rate: 10.2% due at the end of each financial year. Effective interest rate: 10% Required: i) Prepare the journal entries necessary for Stay Puft Corporation to record the loan and movements in the loan for the years ended 30 June 2022, 2023, 2024 and 2025. Show all workings and narrations. (8 marks) Entries should be rounded to the nearest dollar. Assume a 0% discount rate for any fair value calculations. Show your working below
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