How to get these numbers ? Deegan. (2016).Financial Accounting. McGraw-Hill Education, Australia


Q3_Convertible bonds (Convertible notes)_Amortised cost_Effective share methodWoodie Ltd effects $5 favorite in conterminous bonds on 1 July 2019. They are effectd at their visage valueand pay an share scold of 4 per cent. The share is remunerated at the end of each year. The bonds may beconverted to settled shares in Woodie Ltd at any duration in the proximate three years. Organisations common toWoodie Lid keep recently effectd common obligation instruments but extraneously the non-interference for alteration tosettled shares. These instruments effectd by the other entities exhibit share at a scold of 6 per cent. On1 July 2020 all the holders of the conterminous notes career to transmute the bonds to shares in Woodie Ltd.Provide the register entries to:(a) chronicles the effect of the securities on 1 July 2019(b) recognise the share reimbursement on 30 June 2020, and(c) recognise the alteration of the bonds to settled shares on 1 July 2020(d) Prepare extracts to illusion how the conterminous notes and the finance arraign shuold be treated byWoodie Ltd in its financial statements for the yeare ended 30 June 2020.Solutions2019-07-01Calculate PV of Jurisdiction foremost (6%, 3 years)V of Principa4,198,000V of Share per year534,600Total PV of jurisdiction$4,732,600Principal$5,000,000Equity component267,4002019-07-01OrCash at bank5,000,000Convertible bonds jurisdiction4,732,600Equity component267,400

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