Question
please help me TREATMENT OF CONVERTIBLE DEBENTURES LS Limited issued 1 million six-year debentures on 1 January 2018 at par value of 100 each at
please help me
TREATMENT OF CONVERTIBLE DEBENTURES LS Limited issued 1 million six-year debentures on 1 January 2018 at par value of 100 each at a fixed rate of 6% per annum. Interest payable at the end of each year whereas the principal is to be repaid in two equal installments at the end of 2022 and 2023. Debentures were issued with an option to convert 10 debentures into 4 ordinary shares of LS Limited till the date of first principal redemption. The liability was not designated as measured at fair value through profit or loss on initial recognition. The market interest rate for non-convertible debentures issued by entities having similar credit risk and loan tenor is 1-Year LIBOR + 2% per annum. On 1 January 2019 LS Limited repurchased 100,000 debentures at a premium of 5 per debenture. Transaction cost of 2 per debenture was incurred on this redemption. The market interest rates and market values of LS Limited's shares are given below: Date 1-YEAR LIBOR Market value per share 1 January 2019 5% 200 1 January 2020 6% 250 Required: Prepare Journal Entries in the books of LS Limited for the year ended 31 2019
A D H 1 M 1 2 4 5 TREATMENT OF CONVERTIBLE DEBENTURES LS Limited issted milion six-year debetites on 1 Janar 2018 at parvatne of 100 each at a fixed rate of 6% per aneren. Interest payable at the end of each year whereas the principal is to be repaid in two equal installments at the end of 2022 and 2023 7 Debeures were issued with an option to convert 10 debeatures interimary shares of LS Limited till the date of Erst principal redemption The Siblity was ne designated as measured at fair vatne temp profit or lossco initial recognition 10 11 12 13 14 15 16 17 The market aterest rate for ace-convertible debeatures issued by eatities having similar credit risk and loas tener is 1-Year LIBOR + 2 per aten On 1 January 2019 LS Limited Tepechased 100.000 debentures at a premiran of 5 per debeture Transaction cost of 2 per debenture was incurred on this redemption The market interest rates and market values of LS Limited's shares me piven below: Date -YEAR LIBOR Market value per share mai 2012 200 LORO 250 Required: Prepare Journal Entries in the book of LS Limited for the year ended 31 2019 19 20 21 22 23 24 25 26 27 6 31 33 34 35 A D H 1 M 1 2 4 5 TREATMENT OF CONVERTIBLE DEBENTURES LS Limited issted milion six-year debetites on 1 Janar 2018 at parvatne of 100 each at a fixed rate of 6% per aneren. Interest payable at the end of each year whereas the principal is to be repaid in two equal installments at the end of 2022 and 2023 7 Debeures were issued with an option to convert 10 debeatures interimary shares of LS Limited till the date of Erst principal redemption The Siblity was ne designated as measured at fair vatne temp profit or lossco initial recognition 10 11 12 13 14 15 16 17 The market aterest rate for ace-convertible debeatures issued by eatities having similar credit risk and loas tener is 1-Year LIBOR + 2 per aten On 1 January 2019 LS Limited Tepechased 100.000 debentures at a premiran of 5 per debeture Transaction cost of 2 per debenture was incurred on this redemption The market interest rates and market values of LS Limited's shares me piven below: Date -YEAR LIBOR Market value per share mai 2012 200 LORO 250 Required: Prepare Journal Entries in the book of LS Limited for the year ended 31 2019 19 20 21 22 23 24 25 26 27 6 31 33 34 35Step by Step Solution
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