Question
On January 1, 2020, Sheridan Corp. issued $1,155,000 of five-year, zero-interest-bearing notes along with warrants to buy 1,070,000 common shares at $21 per share.
On January 1, 2020, Sheridan Corp. issued $1,155,000 of five-year, zero-interest-bearing notes along with warrants to buy 1,070,000 common shares at $21 per share. On January 1, 2020, Sheridan had 9.3 million common shares outstanding and the market price was $20 per share. Sheridan Corp. received $1,070,000 for the notes and warrants. If offered alone, on January 1, 2020, the notes would have been issued to yield 11% 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 O decimal places, eg. 5,250.) Date Account Titles and Explanation January 1, 2020 eTextbook and Media List of Accounts Debit Credit Prepare an amortization table for the notes using the effective interest method. (Round answers to O decimal places, e.g. 5,275.) SCHEDULESORINTE
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