Abby Bhd issued 6% convertible debentures of RM10 million on I January 2013. Market interest rates...

 

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Abby Bhd issued 6% convertible debentures of RM10 million on I January 2013. Market interest rates was 9% on 1 January 2013. The debentures can be converted into 400 ordinary shares, for every RM1,000 debentures or for cash on 1 January 2016. Required: (a) Determine the liability and equity elements in the proceeds of RM10 million, as at I January 2013. (6 marl (b) Prepare the journal entries for 2013, 2014 and 2015. (12 mar (c) Prepare the journal entries on the date of maturity (1/1/2016) assuming debentures are converted to share. (4 mark (d) Prepare the journal entries on the date of maturity (1/1/2016) assuming debentures are redeemed for cash. Abby Bhd issued 6% convertible debentures of RM10 million on I January 2013. Market interest rates was 9% on 1 January 2013. The debentures can be converted into 400 ordinary shares, for every RM1,000 debentures or for cash on 1 January 2016. Required: (a) Determine the liability and equity elements in the proceeds of RM10 million, as at I January 2013. (6 marl (b) Prepare the journal entries for 2013, 2014 and 2015. (12 mar (c) Prepare the journal entries on the date of maturity (1/1/2016) assuming debentures are converted to share. (4 mark (d) Prepare the journal entries on the date of maturity (1/1/2016) assuming debentures are redeemed for cash.

Answer rating: 100% (QA)

a Liability element is RM9240612 Equity element is RM759388 b Journal entries for 2013 2014 and 2015 ... View the full answer