Pascal Mosa Ananda W

2502037826
ACCT6034020 - LD53
Financial Accounting II
 Date Accounts Debit Credit
Cash 4,500
Share capital - ordinary 3,000
Share premium - ordinary 1,500
(to record issued shares with a par value)

Date Accounts Debit Credit

Cash 8,200
a
Share Capital - ordinary 8,200
(to record shares with no stated value)
Cash 8,200
b Share Capital - ordinary 1,200
Share Premium - ordinary 7,000
(to record shares with a stated value of 2 euro)

Equity
Share Capital - ordinary 510,000
Share Premium - ordinary 1,320,000
Retained Earnings 2,340,000
Less : Treasury Shares 90,000
Total Equity 4,080,000

Shares Market Price Total Percent

Ordinary Shares 300 x 20 6,000 40%
Preference shares 100 x 90 9,000 60%
Fair Market Value 15,000 100%

Allocation: Ordinary Preference

Issue price 13,500 13,500
Allocation % 40% 60%
Total premium 5,400 8,100

Date Accounts Debit Credit

Cash 13,500
Share capital - preference 5,000
Share premium - preference 3,100
Share Capital - ordinary 3,000
Share premium - ordinary 2,400
(to record all issuance of shares)

Date Accounts Debit Credit

Feb-01 Land 31,000
2022 Share capital - ordinary 15,000
Share premium - ordinary 16,000
(to record journal entry shares for land)
 Notes:
a Total proceeds from Issuance Bonds € 2,000,000
Bonds life 3 Year
Stated rate of interest 6%
Face Value € 1,000
Market Rate 8%
ordinary shares - par vaue 1 250

*Interest payment € 120,000

Present Value of principal € 1,587,660

Present value of interest payment € 309,252
Present value of liability component € 1,896,912

Fair value of convertible debt € 2,000,000

Less: Fair value of liability component € 1,896,912
Fair value of equity component € 103,088

Date Accounts Debit Credit

b Jan-01 Cash 2,000,000
2022 Bonds Payable 1,896,912
Share premium - Conversion Equity 103,088
(to record the issuance of convertible bonds)

Date Accounts Debit Credit

c Jan-01 Bonds payable € 2,000,000
2025 Cash € 2,000,000
(to record repurchase of convertible bonds)
 Schedule of Bond Amortization
Effective Interest Method 6%
Bond Discounted at 8%
Carrying
Interest Discount
a Date Cash Paid Amount of
Expense Amortized
Bonds
1/1/2022 € 1,896,912
31/31/2022 € 120,000 € 151,753 € 31,753 € 1,928,665
31/31/2023 € 120,000 € 154,293 € 34,293 € 1,962,958
31/31/2024 € 120,000 € 157,037 € 37,037 € 1,999,995

b Date Accounts Debit Credit

Jan-01 Share premium - conversion Equity € 103,088
2023 Bonds Payable € 1,928,665
Share capital - ordinary € 500,000
Share premium - ordinary € 1,531,753
(to record the conversion bonds)

Presentc Value of Liability Component € 1,900,000

Carrying Value of liability Component € 1,928,665
Gain on repurchase € 28,665

Fair value of convertible bonds € 1,940,000

Less: Fair value of liability component € 1,900,000
Fair value of equity component € 40,000

Date Accounts Debit Credit

Jan-01 Bonds Payable € 1,928,665
2023 Share premium - conversion equity € 40,000
Gain on repurchase € 28,665
Cash € 1,940,000
(to record repurchase of bond on January 1 2023)
 a *Interest payment ¥ 10,000

Present Value of principal ¥ 35,218

Present value of interest payment ¥ 58,892
Present value of liability component ¥ 94,110

Fair value of convertible debt ¥ 100,000

Less: Fair value of liability component ¥ 94,110
Fair value of equity component ¥ 5,890

Date Accounts Debit Credit

Jan-01 Cash 100,000
2022 Bonds Payable 94,110
Share Premium - Conversion Equity 5,890
(to record issuance of the convertible debt on Jan 1, 2022)

b Schedule of Bond Amortization

Effective Interest Method 8%
Bond Discounted at 11%
Carrying
Date Cash Paid Interest Discount Amount of
Expense Amortized
Bonds
1/1/2022 ¥ 94,110
31/31/2022 ¥ 10,000 ¥ 10,352 ¥ 352 ¥ 94,462
31/31/2023 ¥ 10,000 ¥ 10,391 ¥ 391 ¥ 94,853
31/31/2024 ¥ 10,000 ¥ 10,434 ¥ 434 ¥ 95,287

Present Value of Liability Component ¥ 110,413

Carrying Value of liability Component ¥ 95,287
Loss on repurchase ¥ -15,126

Fair value of convertible bonds ¥ 112,000

Less: Fair value of liability component ¥ 110,413
Fair value of equity component ¥ 1,587

Date Accounts Debit Credit

Jan-01 Bonds Payable € 1,587
2025 Share premium - conversion equity € 95,287
Loss on repurchase € 15,126
Cash € 112,000
(to record the repurchase on January 1, 2025)
a Date Accounts Debit
Dec-31 Debt Investment $ 108,660
2019 Cash
(to record purchase of bonds held for collection investment)

b Date Accounts Debit

Cash $ 7,000
2020 Interest Revenue
Debt Investment
(to record received held for collection for 2020)

c Date Accounts Debit

Cash $ 7,000
2022 Interest Revenue
Debt Investment
(to record received held for collection for 2022)
d Date Accounts Debit
Dec-31 Debt Investment $ 108,660
2019 Cash
(to record purchase of bonds classified as trading)

e Date Accounts Debit

Cash $ 7,000
2022 Interest Revenue
Debt Investment
(to record bonds for 2020 assuming as trading)

Date Accounts Debit

Unrealized Holding Gain or Loss-Income $ 593
2022 Securities Fair Value
(to record bonds for 2020 assuming as held for collection and selling)

f Date Accounts Debit

Cash $ 7,000
2022 Interest Revenue
Debt Investment
(to record bonds for 2020 assuming as trading)

Date Accounts Debit

Unrealized Holding Loss-Income $ 122
2022 Securities Fair Value

a Date Accounts Debit

Jan-01 Debt Investment € 400,000
2022 Cash
(to record purchase of bonds on January 1)
b 8% Bonds Purchased to Yield 10%
Interest Bond Discount Carrying Amount
Date Cash Received
Revenue Amortization of Bonds
1/1/2022 € 369,114
7/1/2022 € 16,000 € 18,456 € 2,456 € 371,570
12/31/2022 € 16,000 € 18,578 € 2,578 € 374,148
7/1/2023 € 16,000 € 18,707 € 2,707 € 376,856
12/31/2023 € 16,000 € 18,843 € 2,843 € 379,698
7/1/2024 € 16,000 € 18,985 € 2,985 € 382,683
12/31/2024 € 16,000 € 19,134 € 3,134 € 385,817
7/1/2025 € 16,000 € 19,291 € 3,291 € 389,108
12/31/2025 € 16,000 € 19,455 € 3,455 € 392,564
7/1/2026 € 16,000 € 19,628 € 3,628 € 396,192
12/31/2026 € 16,000 € 19,810 € 3,810 € 400,002
Total € 160,000 € 190,888 € 30,888

c Date Accounts Debit

Jul-01 Cash € 16,000
2022 Debt Investment € 2,456
Interest Revenue
(to record semiannual interest on July 1, 2022)
Dec-31 Account Receivable - Interest € 16,000
2022 Debt Investment € 2,578
Interest Revenue
(to record semiannual interest on Dec 31, 2022)

d Date Accounts Debit

Jan-01 Cash € 370,726
2024 Loss on Sale € 8,972
Debt Investment
(to record sale of the bonds on January 1, 2024)

e Date Accounts Debit

Jan-01 Unrealized Holding Loss - Income € 6,148
2024 Securities Fair Value
(to record adjusting entry for elected fair value)
 Credit

$ 108,660

Credit

$ 5,433
$ 1,567

Credit

$ 5,272
$ 1,728
 Credit

$ 108,660

Credit

$ 5,433
$ 1,567

Credit

$ 5,433

Credit

$ 5,272
$ 1,728

Credit

$ 122

Credit

€ 400,000
 Credit

€ 18,456

€ 18,578

Credit

€ 379,698

Credit

€ 6,148