Omega Ltd issues loan notes of £150,000 on 1 January 2072. Redemption is to take place...
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Accounting
Omega Ltd issues loan notes of £150,000 on 1 January 2072. Redemption is to take place on equal terms, six years later. The company decides to put aside an equal amount to be invested at 4% which will provide £150,000 on maturity. Tables show that £0.161082 invested annually will produce £1 in six years’ time.
Required:
Annual sinking fund deposit calculation.
Yearly investment balance record.
Schedule for loan-note redemption.
Effect on the equity section of the balance sheet.
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