Solved

Spoton Co Ltd Issues $5 Million in 2-Year, 8 Per

Question 5

Multiple Choice

Spoton Co Ltd issues $5 million in 2-year, 8 per cent, semi-annual coupon debentures to the public. The market required rate of return is also 8 per cent. The money is received on application and the debentures are allotted on the same day: 30 June 2003. What are the journal entries to record (a) the receipt of funds and allotment of debentures on 30 June 2003, (b) the payment of interest on 31 December 2003 and (c) the redemption of the debentures on 30 June 2005?


A) Spoton Co Ltd issues $5 million in 2-year, 8 per cent, semi-annual coupon debentures to the public. The market required rate of return is also 8 per cent. The money is received on application and the debentures are allotted on the same day: 30 June 2003. What are the journal entries to record (a) the receipt of funds and allotment of debentures on 30 June 2003, (b) the payment of interest on 31 December 2003 and (c) the redemption of the debentures on 30 June 2005? A) B) C) D) E) None of the given answers.
B) Spoton Co Ltd issues $5 million in 2-year, 8 per cent, semi-annual coupon debentures to the public. The market required rate of return is also 8 per cent. The money is received on application and the debentures are allotted on the same day: 30 June 2003. What are the journal entries to record (a) the receipt of funds and allotment of debentures on 30 June 2003, (b) the payment of interest on 31 December 2003 and (c) the redemption of the debentures on 30 June 2005? A) B) C) D) E) None of the given answers.
C) Spoton Co Ltd issues $5 million in 2-year, 8 per cent, semi-annual coupon debentures to the public. The market required rate of return is also 8 per cent. The money is received on application and the debentures are allotted on the same day: 30 June 2003. What are the journal entries to record (a) the receipt of funds and allotment of debentures on 30 June 2003, (b) the payment of interest on 31 December 2003 and (c) the redemption of the debentures on 30 June 2005? A) B) C) D) E) None of the given answers.
D) Spoton Co Ltd issues $5 million in 2-year, 8 per cent, semi-annual coupon debentures to the public. The market required rate of return is also 8 per cent. The money is received on application and the debentures are allotted on the same day: 30 June 2003. What are the journal entries to record (a) the receipt of funds and allotment of debentures on 30 June 2003, (b) the payment of interest on 31 December 2003 and (c) the redemption of the debentures on 30 June 2005? A) B) C) D) E) None of the given answers.
E) None of the given answers.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q1: Dubbin Ltd issues $3 million in 5-year,

Q3: One recognised approach to reducing the level

Q12: Pearl Ltd issues $8 million in 5-year

Q13: Tissues and Co has elected to issue

Q24: The defining characteristic of a 'provision' as

Q32: In accordance with AASB 137 "Provisions,Contingent Liabilities

Q39: Executory contracts are within the scope of

Q39: A present obligation,as one of the criteria

Q42: Which of the following provisions satisfy the

Q45: The market will only pay a premium