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please answer all parts. thank you Question 1 of 6 -/25 III On January 1, 2020. Pharoah Corp. issued $1,125,000 of five-year, zero-interest-bearing notes along
please answer all parts. thank you
Question 1 of 6 -/25 III On January 1, 2020. Pharoah Corp. issued $1,125,000 of five-year, zero-interest-bearing notes along with warrants to buy 1,030,000 common shares at $21 per share. On January 1, 2020, Pharoah had 9.3 million common shares outstanding and the market price was $20 per share. Pharoah Corp. received $1,030,000 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 0 decimal places, e.g. 5,250.) Date Account Titles and Explanation Debit Credit January 1, 2020 Prepare an amortization table for the notes using the effective interest method. (Round answers to decimal places, eg. 5,275.) SCHEDULE FOR INTEREST AND DISCOUNT AMORTIZATION- EFFECTIVE INTEREST METHOD Effective Discount Interest Amortized Cash Interest Date 1/1/20 $ 12/31/20 $ $ $ 12/31/21 12/31/22 12/31/23 12/31/24 Total $ $ $ Question 1 of 6 -/25 III Prepare adjusting journal entry for Pharoah 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 O for the amounts. Round answers to 0 decimal places, eg. 5,275.) Date Account Titles and Explanation Debit Credit December 31, 2020 e Textbook and Media List of Accounts Prepare the journal entry required for Pharoah 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 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit January 1, 2023Step by Step Solution
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