Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. phi ltd issues loan notes of $125,000 on 1 januar

Phi Ltd issues loan notes of $125,000 on 1 January 2046. Redemption is to take place...

60.1K

Verified Solution

Question

Accounting

Phi Ltd issues loan notes of $125,000 on 1 January 2046. Redemption is to take place on equal terms, five years later. The company decides to put aside an equal amount to be invested at 4% which will provide $125,000 on maturity. Tables show that $0.185093 invested annually will produce $1 in five years’ time.

Required: (a) Loan-note redemption reserve account. (b) Loan-note sinking fund investment account. (c) Loan-notes account. (d) Extract from the retained profits account.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Two professors at a local college developed a new teaching curriculum designed to increase​ students' grades...

Statistics
Q

The following sample data have been collected from a paired sample from two populations. The claim...

Statistics
Q

A mass m1 on a horizontal shelf is attached by a thin string that passes over...

Physics
Q

Explain earthing in DC traction applications with a simple diagram. What are the hazards involved? Explain...

Electrical Engineering
Q

Inventory Control You are the production manager of GVT Manufacturing, a company that manufactures a wide range...

General Management
Q

Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat...

Accounting
Q

If you want to avoid your paper seems as if it has all the ideas...

Biology
Q

Claim: Most adults would erase all of their personal information online if they could. A...

Basic Math
Q

a Use the appropriate formula to find the value of the annuity b Find the...

Calculus
Q

Need 8.5-10.10 answered. ...

Accounting
Q

nstructions: You are required to download the IT12 form from the Tax Administration...

Accounting
Q

On January 1, 2019, ABC Company borrowed $120,000 from the bank. The loan is a...

Accounting