Entity A is an international trading company listed in Hong Kong for many years. Its operation is financed by debt. Debt was issued for $12,000,000 on 1 January 2019. An issue cost of $147,134 was also incurred on the same day. The term of the debt is five years and interest is paid at 8.25% annually in advance. The effective rate of interest is 12.75 %. The debt is redeemable at a 20% premium. REQUIRED: Provide the journal entries of Entity A from 1 January 2019 to 31 December 2023. ACCOUNTS FOR INPUT: | Financial liability | Financial asset | Equity instrument | Interest expense | Interest revenue | | Interest payable | Interest receivable | Bank | Share capital | Retained earnings | No entry | ANSWER: Journal Entries: Date Account Name Debit ($) Credit ($) Hints For Sequence 1 - Jan-19.1-Jan-19.. 31-Dec-19. 1-Jan-20. Judge Dr/Cr. Asset. 31-Dec-20. . 1-Jan-21. Judge Dr/Cr. Asset. 31-Dec-21. . 1-Jan-22. Judge Dr/Cr. Asset. 31-Dec-22.. 1-Jan-23.
Judge Dr/Cr. Asset. 31-Dec-23.31-Dec-23.