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.
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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![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc2266722-6cbc-4b9d-9686-e32ea5e20d76%2F88545c92-c99d-427f-865a-7b2128c63892%2F6j8upl_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
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