Question
On January 1, 2023, Oriole Corp. issued $1.140 million of five-year, zero-interest-bearing notes along with warrants to buy $1.05 million common shares at $20 per
On January 1, 2023, Oriole Corp. issued $1.140 million of five-year, zero-interest-bearing notes along with warrants to buy $1.05 million common shares at $20 per share. On January 1, 2023, Oriole had $9.3million common shares outstanding and the market price was $19 per share. Oriole received $1.05 million for the notes and warrants. If offered alone, on January 1, 2023, the notes would have been issued to yield 10% 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.
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