Strayway PLC sells two planes to Elliott & Elliott Budget Airlines PLC for 5 million euros each

Question:

Strayway PLC sells two planes to Elliott & Elliott Budget Airlines PLC for 5 million euros each payable in two years' time on presentation of an accepted bill of exchange to be presented through Lloyds Bank. The face value of the bill is €10,000,000. Further enquiry ascertains that government bonds with two years to maturity yield 4% p.a. and Strayway borrows from their bank at 9%, and the average yield on commercial bills of exchange payable in two years-time is 8%.
Required:
Record the sale and associated transactions in the books of Strayway PLC. Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...