On 1 January 2019, Janice Ltd issued $10,000,000 6%, 5-year debentures. Interest is payable half-yearly on 30 June and 31 December. The company’s financial year ends on 31 December. Any premiums or discounts on the issue are to be amortized over the entire term using the effective interest method. The market interest rate is 4% per annum. (a) Determine the price of debentures on 1 January 2019. (b) Prepare journal entries to record the debenture issued, the payments of interest, amortization of discount or premium for the financial year ending 31 December 2019. Narratives are not required. (c) Prepare an effective interest amortization table as follows: Periods Cash interest paid Interest expense Premium amortization Unamortized premium Carrying Amount (d) ‘It does not matter to what extent a company uses total fixed cost versus total variable cost because under any circumstance, the use of total fixed cost or total variable cost is not relevant to the change in a company’s profit’. Do you agree to the statement above? Illustrate your answer with an example.
https://helpmewriteessay.xyz/wp-content/uploads/2021/08/whatsapp-logo-300x115.jpeg 0 0 First class essays https://helpmewriteessay.xyz/wp-content/uploads/2021/08/whatsapp-logo-300x115.jpeg First class essays2022-04-21 06:52:142022-04-21 06:52:14On 1 January 2019, Janice Ltd issued $10,000,000 6%, 5-year debentures. Interest is payable half-yearly on 30 June and 31 December. The company’s financial year