Problem On January 1. 2021, Lilianne Company issued mandatorily redeemable preference shares in exchange for cash equal to the total par value of the shares of PS,000,000. No dividenda are to be paid on these shares but the sharee must be redeemed on January 1, 2023 for P6,050,000.. The implicit intereet rate in 10% which is compounded annually. Required: Prepare journal entries for 2021, 2022 and 2023 to record the insuance of preference shares, interest expense and redemption of the shares
Problem On January 1. 2021, Lilianne Company issued mandatorily redeemable preference shares in exchange for cash equal to the total par value of the shares of PS,000,000. No dividenda are to be paid on these shares but the sharee must be redeemed on January 1, 2023 for P6,050,000.. The implicit intereet rate in 10% which is compounded annually. Required: Prepare journal entries for 2021, 2022 and 2023 to record the insuance of preference shares, interest expense and redemption of the shares
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 14P
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