Spoton Co Ltd Issues $5 Million in 2-Year,8%,semi-Annual Coupon Debentures

question 56

Multiple Choice

Spoton Co Ltd issues $5 million in 2-year,8%,semi-annual coupon debentures to the public.The market required rate of return is also 8%.The money is received on application and the debentures are allotted on the same day: 30 June 2013.What are the journal entries to record (a) the receipt of funds and allotment of debentures on 30 June 2013,(b) the payment of interest on 31 December 2013 and (c) the redemption of the debentures on 30 June 2015?

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Definitions:

Sympathetic

Part of the autonomic nervous system involved in the body's fight or flight response, regulating heart rate, blood flow, and other functions.

Epinephrine

A hormone and neurotransmitter also known as adrenaline; it increases heart rate, constricts blood vessels, and dilates air passages.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, affecting blood pressure, heart rate, and sugar metabolism.

Sympathetic

Pertaining to the part of the autonomic nervous system that typically prepares the body for intense physical activity and is often referred to as the fight-or-flight response.