Problem 9 Problem 20-9 (IAA)On January 1. 2021, Lilianne Company issued mandatorilyredeemable preference shares in exchange for cash equal tothe total par value of the shares of P6,000,000.No dividends are to be paid on these shares but the sharesmust be redeemed on January 1, 2023 for P6,050,000.The implicit interest rate is 10% which is compoundedannually.Required:Prepare journal entries for 2021, 2022 and 2023 to recordthe issuance of preference ahares, interest expenseredemption of the shares.and

Company means the form of business where management is separately from owner and have perpetual…

Problem On January 1. 2021, Lilianne Company issued mandatorily redeemable preference shares in exchange for cash equal to the total par value of the shares of PS,000,000. No dividenda are to be paid on these shares but the sharee must be redeemed on January 1, 2023 for P6,050,000.. The implicit intereet rate in 10% which is compounded annually. Required: Prepare journal entries for 2021, 2022 and 2023 to record the insuance of preference shares, interest expense and redemption of the shares

Problem On January 1. 2021, Lilianne Company issued mandatorily redeemable preference shares in exchange for cash equal to the total par value of the shares of PS,000,000. No dividenda are to be paid on these shares but the sharee must be redeemed on January 1, 2023 for P6,050,000.. The implicit intereet rate in 10% which is compounded annually. Required: Prepare journal entries for 2021, 2022 and 2023 to record the insuance of preference shares, interest expense and redemption of the shares

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 14P

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