Question 1 Accounting for Debentures (13 marks) On 1 August 2020, Candy Ltd issued a disclosure document inviting applications for 10,000 of $80 debentures at par, payable in full on application.

The debentures carry an 8% annual interest charge and will be redeemed at nominal value in 5 years. The interest payment is made semi-annually on 31 December and 30 June each year.

By 30 September 2020, Candy Ltd received application money for 11,000 debentures.

On 1 October 2020, Courtney Ltd issued 10,000 debentures and refunded monies to 1,000 unsuccessful applicants.

Required:

"Prepare a" general journal template as per example below based on the information above, for Candy Ltd for the year ended 30 June 2021. Include a narration.