Question
The company arranges a US-dollar interest-only loan on January 1, 2022, for US$20 million. The loan is for 10 years at an interest rate of
The company arranges a US-dollar interest-only loan on January 1, 2022, for US$20 million. The loan is for 10 years at an interest rate of 11.5 per cent per annum. Interest is payable annually. The following exchange rates are applicable. Refer to the provide Chart of Accounts for the appropriate account names.
January 1, 2022AUS$1.00 = US$0.69
June 30, 2022AUS$1.00 = US$0.64
Record the taking of the loan on January 1, 2022, and relevant financial year-end entries on June 30, 2022.
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Equity Asset Valuation
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
2nd Edition
470571439, 470571438, 9781118364123 , 978-0470571439
