luxco acquires participation on Aprin 1, 2012 for 1000000. This investment is financed by (a) share premium for 100.000é (b) an interest-free shareholder loan for 250000€ and (c) bank loan bearing interest at 5% per annum for the balance. the interest on the bank mentioned above are payable on the last day of each civil quarter (March 31...). Any unpaid accrued interest bear also interest at 5% per annum starting from the day after their due date (from Aprin 1 for interest payable on March 31). Assuming that Luxco does not pay its interest on June 30, 2012, please detail the accounting entries in relation with the booking of interest as Jube 30, 0210 and September 30, 2012 Make the journal entries only for the interest
luxco acquires participation on Aprin 1, 2012 for 1000000. This investment is financed by (a) share premium for 100.000é (b) an interest-free shareholder loan for 250000€ and (c) bank loan bearing interest at 5% per annum for the balance.
the interest on the bank mentioned above are payable on the last day of each civil quarter (March 31...). Any unpaid accrued interest bear also interest at 5% per annum starting from the day after their due date (from Aprin 1 for interest payable on March 31). Assuming that Luxco does not pay its interest on June 30, 2012, please detail the accounting entries in relation with the booking of interest as Jube 30, 0210 and September 30, 2012
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