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Determine the carrying amount of bonds payable on Deps books

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Problem - On January 1, 2018, Deps Co. issues convertible bonds with a maturity of five years. The issue is for a total of 1,000 convertible bonds. Each bond has a par value of 1,000, a stated interest rate of 5% per year, and is convertible into 5 ordinary shares of Deps. The convertible bonds were issued to Beps at par. The per-share price of Deps share is 15. Quotation for similar bonds issued by Deps without the conversion privilege suggest that they can be sold for 900,000. Based on the above data, determine the following:

1. The issuance of convertible bonds increased Deps's equity by

2. The carrying amount of bonds payable on Deps's books as of December 31, 2018 is?

Reference no: EM132849143

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