Question: hi guys any help on this solution would be really helpful thanks guys River Park Ltd's summary balance sheet as at 31 December 2013 was
hi guys any help on this solution would be really helpful thanks guys
River Park Ltd's summary balance sheet as at 31 December 2013 was as follows: On 1 January 2014, the directors of the company decided to make a one-for-ten capitalisation issue (bonus issue, issuing one new share for every 10 existing shares). On 2 January 2014 River Park Ltd issued a three-year bond with a face value of 4,000.000 to purchase a property. The bond paid nominal interest of 4.5% annually at the end of each year and the company received proceeds of 4.169.717. At the time of issue, the effective market rate of interest was 3.0%. Show the balance sheet of River Park Ltd immediately following the one-for- ten capitalisation issue (January 1, 2014). Calculate the annual income statement interest expense and balance sheet value of the bond at 31 December 2014 and for each of the following two years
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