Delta Ltd issues loan notes of £95,000 on 1 January 2053. Redemption is to take place...
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Accounting
Delta Ltd issues loan notes of £95,000 on 1 January 2053. 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 £95,000 on maturity. Tables show that £0.185093 invested annually will produce £1 in five 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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