Mat Ltd borrows $360 000 from Place Ltd on 1 July 2022 with an interest rate of 6% p.a. The loan is for 5 years. The interest is to be paid monthly, starting on 1 July 2022. Gon Ltd owns all the share capital of Dola Ltd. Sean Ltd borrows $800 000 from Gon Ltd on 31 December 2022 with an interest rate of 6% p.a. The interest is to be paid annually in advance, starting on 31 December 2022. Required: In relation to the above intragroup transactions: Prepare adjusting journal entries for the consolidation worksheet at 30 June 2023.

Mat Ltd borrows $360 000 from Place Ltd on 1 July 2022 with an interest rate of 6% p.a. The loan is for 5 years. The interest is to be paid monthly, starting on 1 July 2022. Gon Ltd owns all the share capital of Dola Ltd. Sean Ltd borrows $800 000 from Gon Ltd on 31 December 2022 with an interest rate of 6% p.a. The interest is to be paid annually in advance, starting on 31 December 2022. Required: In relation to the above intragroup transactions: Prepare adjusting journal entries for the consolidation worksheet at 30 June 2023.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6MC: On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest...

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