On January 1, 2020, Sandhill Corp issued $1,130,000 of five year, zero interest bearing notes along with warrants to buy 1,050,000 common shares at $21 per share On January 1, 2020, Sandhill had 9 3 million common shares outstanding and the market price was $20 per share Sandhill Corp received $1,050,000 for the notes and warrants If offered alone, on January 1, 2020, the notes would have been issued to yield 12 to the creditor Assume that the company follows IFRS Prepare the journal entry to record the issuance of the zero interest bearing notes and warrants for the cash consideration that was received (Credit account titles are automatically indented when the amount is entered Do not indent manually Round answers to 0 decimal places, e g 5,250 ) Date Account Titles and Explanation Debit Credit January 1, 2020 eTextbook and Media List of Accounts Prepare an amortization table for the notes using the effective interest method (Round answers to 0 decimal places, e g 5,275 ) SCHEDULE FOR INTEREST AND DISCOUNT AMORTIZATION EFFECTIVE INTEREST METHOD Cash Effective Discount Carrying Date Interest Interest Amortized Amount 1 1 20 $ 12 31 20 $ $ $ 12 31 21 12 31 22 12 31 23 12 31 24 Total $ $ $ eTextbook and Media List of Accounts Prepare adjusting journal entry for Sandhill Corp at the end of its fiscal year of December 31, 2020 (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts Round answers to 0 decimal places, e g 5,275 ) Date Account Titles and Explanation Debit Credit December 31, 2020 eTextbook and Media List of Accounts Prepare the journal entry required for Sandhill Corp if a quarter of the warrants are exercised on January 1, 2023 (Credit account titles are automatically indented when the amount is entered Do not indent manually Round answers to 0 decimal places, e g 5,275 ) Date Account Titles and Explanation Debit Credit January 1, 2023

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On January 1, 2020, Sandhill Corp. issued $1,130,000 of five-year, zero-interest-bearing notes along with warrants to buy 1,050,000 common shares at $21 per share. On

On January 1, 2020, Sandhill Corp. issued $1,130,000 of five-year, zero-interest-bearing notes along with warrants to buy 1,050,000 common shares at $21 per share. On January 1, 2020, Sandhill had 9.3 million common shares outstanding and the market price was $20 per share. Sandhill Corp. received $1,050,000 for the notes and warrants. If offered alone, on January 1, 2020, the notes would have been issued to yield 12% to the creditor. Assume that the company follows IFRS.

Prepare the journal entry to record the issuance of the zero-interest-bearing notes and warrants for the cash consideration that was received. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,250.)

Date	Account Titles and Explanation	Debit	Credit
January 1, 2020

eTextbook and Media

List of Accounts

Prepare an amortization table for the notes using the effective interest method. (Round answers to 0 decimal places, e.g. 5,275.)

SCHEDULE FOR INTEREST AND DISCOUNT AMORTIZATION
EFFECTIVE INTEREST METHOD
	Cash	Effective	Discount	Carrying
Date	Interest	Interest	Amortized	Amount
1/1/20				$
12/31/20	$	$	$
12/31/21
12/31/22
12/31/23
12/31/24
Total	$	$	$

eTextbook and Media

List of Accounts

Prepare adjusting journal entry for Sandhill Corp. at the end of its fiscal year of December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2020

eTextbook and Media

List of Accounts

Prepare the journal entry required for Sandhill Corp. if a quarter of the warrants are exercised on January 1, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)