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What are the journal entries for the following transaction? A company entered into a two-year loan...

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Accounting

What are the journal entries for the following transaction?

A company entered into a two-year loan of $20,000,000, with a20% interest rate payable semi-annually April 1 and October 1 withno principal due until maturity. The debt is convertible intoshares of common stock at $1.50 per share. The company incurred$1,5000,000 in financing costs, paid to the issuer.

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Solution of the above problem is as under Date Particulars and Explanation Debit Credit Apr01 Bank Ac Dr 20000000 To 20 Debt Payable Ac 20000000 Being Loan Taken Oct01 Interest Expense Ac Dr 2000000 To Interest    See Answer
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