Prepare the general journal entries to record the issue of the convertible notes so as to enable the disclosures required under AASB 7.

An entity issued 2 million convertible notes on 1 July 2016. The notes have a four-year

 

term and were issued at $4 per note, giving total cash proceeds of $8 million. Interest is

payable annually in arrears at a rate of 8% per annum. Each note is convertible into one

ordinary share at or before maturity. When the notes were issued, the prevailing market

interest rate for similar debt without conversion options attached was 10% per annum.

Required

Prepare the general journal entries to record the issue of the convertible notes so as to

enable the disclosures required under AASB 7.

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the auditor should ensure control testing is performed for periods both before and after the accounting change became effective.

A major change in the accounting system has taken place during the year. The effect on control testing is that: a. the auditor should ensure control testing is performed for….

select a sample of invoices relating to motor vehicle purchases and ensure they are correctly recorded on the non-current assets master file.

The following represents an existence test for property, plant, and equipment: a. select a sample of items of machinery in the factory and agree that they are correctly recorded in….

The control that would be the most effective in assuring that the proper custody of assets in the investing cycle is maintained is?

The control that would be the most effective in assuring that the proper custody of assets in the investing cycle is maintained is: a. the purchase and sale of investments….