Question 1B: - On March 01, Moon Co Ltd., issued 50, 000, 12% debentures of Rs. 100 each.. Instructions: - Give journal entries if debentures are issued at (a) 6 % premium (b) 9% discount.
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Question 1B: - On March 01, Moon Co Ltd., issued 50, 000, 12% debentures of Rs. 100 each..
Instructions: - Give
(a) 6 % premium (b) 9% discount.
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- On 1.1.2005, Fast computers Ltd. Issued 20,00,000 6% debentures of Rs. 100 each at a discount of 4% redeemable at a premium of 5% after three years. The amount was payable as follows:On application Rs. 50 per debenture balance on allotment.Record the necessary Journal entries for issue of debentures.On April 1, 20X1, Nelsen Inc. accepts a $100,000, 8% note. The note receivable and interest are due on March 31, 20X2 (one year later). On March 31, 20X2, Nelson Inc. will record interest revenue of: $2,000. $8,000. $6,000. $0.Mutiple choice: A hospitality company is the maker of an $18,000 note to be paid in quarterlyinstallments of $3,000 each. The first payment is to be made on June 30. How willthe note be represented on the balance sheet for May 31? A. $18,000 long-term liabilityB. $3,000 expense, $15,000 long-term liabilityC. $3,000 expense, $9,000 current liability, $6,000 long-term liabilityD. $12,000 current liability, $6,000 long-term liability
- B Ltd. Issued 2,000, 6% debentures of Rs.50 each. Give journal entries if the debentures are – · Issued at par and redeemable at par, · Issued at a discount of 10% and redeemable at par. · Issued at a premium of 10% and redeemable at par. · Issued at par and redeemable at a premium of 10%. · Issued at a discount of 10%, and redeemable at a premium of 10%. You are also required to show how the items will appear in the Balance Sheet of the above cases.62. A hospitality company is the maker of an $18,000 note to be paid in quarterlyinstallments of $3,000 each. The first payment is to be made on June 30. How willthe note be represented on the balance sheet for May 31?A. $18,000 long-term liabilityB. $3,000 expense, $15,000 long-term liabilityC. $3,000 expense, $9,000 current liability, $6,000 long-term liabilityD. $12,000 current liability, $6,000 long-term liabilityAl-Ahmadi Co. signed a three-month, 9%, note payable in the amount of OMR75,000 on Dec 1. The note requires interest at an annual rate of 12 percent. Thus, if an income statement is prepared, the interest expenses should be: Select one: a. OMR 66,000 b. OMR 750 c. OMR 9,000 d. None of the answers are correct e. OMR 8,250
- A 60-day, 6% note for $26,400, dated May 1, is received from a customer on account. The maturity value of the note, assuming a 360- day year, is A.$264 Ob. $26,664 Oc. $26,400 Od. $27,984on March 1, 20x1 Nick Co. issued a P6000, 12%note dated January 1, 20x1 in exchange an outstanding account payable of P6,000. The principal and the 6-month interest on the nore due on July 1, 20x1. On initial recognition, which of the following acounts increased? a. Prepaid Interest b. interest payable c. discount on nte payable d. interest expenseB Ltd issued Rs.7,00,000, 12% Debentures at a discount of 5% repayable at a premium of 10% at the end of 5 years. Pass Journal Entries and also show how it will appear in the Balance Sheet
- X Ltd. issued 6,000, 12% Debentures of 100 each at a discount of 0. on 01.04.2014. The debentures were payable in installments ot 2,00,000 starting from 31.03.2016. Show the discount on Issue of Debentures account for the years 2014-15 to 2017-18. You are required to a. •a Pass entries for issue of Debentures. Prepare Loss on Issue of Debentures AccountRoyalty Inc. lends to Shakespeare LTD. $50,000 on November 16. Shakespeare LTD. signs the 10%, 90-day note. ***Remember interest accruing starts the next day.*** 1. What is the amount of accrued interest December 31? $ 2. What is the amount of interest expense February 14? $ 3. What is the maturity value paid when the note is honored? $On January 1, 20x1, RELISH TASTE Co. acquired a machine by issuing a 3%, P4,000,000 note due on January 1, 20x4. Interest is payable semiannually. The effective interest rate is 12%. How much is the carrying amount of the note on initial recognition?