On 1 January Fairy Wren Ltd issued $100 000, 10%, 10-year unsecured notes at face value. Interest
Question:
On 1 January Fairy Wren Ltd issued $100 000, 10%, 10-year unsecured notes at face value. Interest is payable half-yearly on 1 July and 1 January. Interest is not accrued on 30 June. Fairy Wren Ltd’s year-end is 31 December.
Required
Prepare journal entries to record these events:
(a) The issue of the unsecured notes.
(b) The payment of interest on 1 July.
(c) The accrual of interest on 31 December.
Step by Step Answer:
Answer Required journal entries Date Accounts Debit Credit Jan01 ...View the full answer
Financial Accounting Reporting Analysis And Decision Making
ISBN: 9780730313748
5th Edition
Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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