P.14.11. On 1 July 2005 Lancer Ltd purchased 1000 debentures with a face value of $100 each for a price of $107985. The debentures were issued by Evo Ltd and pay interest on 30 June each year at a nominal rate of 10% per annum, while the effective interest implied by Lancer’s purchase price is … Continue reading “showing the interest revenue | My Assignment Tutor”
P.14.11. On 1 July 2005 Lancer Ltd purchased 1000 debentures with a face value of $100 each for a price of $107985. The debentures were issued by Evo Ltd and pay interest on 30 June each year at a nominal rate of 10% per annum, while the effective interest implied by Lancer’s purchase price is 8% per annum. The debentures mature and will be repaid on 30 June 2010. Required Prepare a table showing the interest revenue recognised by Lancer Ltd in each of the next five years, in accordance with AASB 118.Show general journal entries for Lancer Ltd relating to the debentures and debenture interest on 30 June 2006 and 30 June 2010.
