Convertible bonds, Fogel Co. has $3,000,000 of 8%

Convertible bonds

Assignment Help Financial Accounting

Reference no: EM13826855

Fogel Co. has $3,000,000 of 8% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value common stock. The bonds pay interest on January 31 and July 31. On July 31, 2014, the holders of $960,000 bonds exercised the conversion privilege. On that date the market price of the bonds was 105 and the market price of the common stock was $36. The total unamortized bond premium at the date of conversion was $210,000. Fogel should record, as a result of this conversion, a

a. credit of $163,200 to Paid-in Capital in Excess of Par.

b. credit of $144,000 to Paid-in Capital in Excess of Par.

c. credit of $67,200 to Premium on Bonds Payable.

d. loss of $9,600.

Reference no: EM13826855

Questions Cloud

Writes to timothy that scripture is the pillar : In 1Timothy 3:15 in the New Testament, the Apostle Paul writes to Timothy that Scripture is the pillar and foundation of truth

Effective-interest method-what is amount of interest revenue : On January 3, 2014, Moss Company acquires $300,000 of Adam Company’s 10-year, 10% bonds at a price of $319,254 to yield 9%. Interest is payable each December 31. The bonds are classified as held-to-maturity. Assuming that Moss Company uses the effect..

Accounting for investment in marketable debt : Discuss the accounting for investment in marketable debt and equity securities.

Who belongs to god may be competent : In Scripture, in 2 Timothy 3:16-17, the Apostle Paul writes: "All____ is inspired by God and is useful for teaching, for refutation, for correction, and for training in righteousness, so that one who belongs to God may be competent, equipped for ever..

Convertible bonds : Fogel Co. has $3,000,000 of 8% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value common stock. The bonds pay interest on January 31 and July 31. On July 31, 2014, the holders of $960,000 bonds exercised th..

Write thee utility functions that describe nancys preference : The problem is a case study about Nancy who takes Fairy Tales and Philosophy courses from Prof. Grimm and Prof. Par respectively. As per the problem, three different utility functions have been described for Nancy's performance.

Marketing audit report with swot and pestle analysis : Marketing Audit Report with SWOT and PESTLE Analysis

Management perspective on decrease in the accounts : From management's perspective, discuss and whether the item is positive or negative.

User Account

All Pages