Determine the net increase in share premium on July

Assignment Help Financial Accounting
Reference no: EM132981183

Question - On July 1, 2019, a corporation issued 4,000 of its 6-year, P1,000 face value, 8% convertible bonds at par. Interest is payable every June 30 and December 31.

On the date of issue, the prevailing market interest rate for similar debt without the conversion option is 10%.

On July 1, 2020, an investor tendered 1,500 bonds for conversion into 100,000, P10 par value, ordinary shares of the corporation.

Determine the net increase in share premium on July 1, 2020 due to the conversion of the bonds. Round off present value factors to four decimals.

Reference no: EM132981183

Questions Cloud

Discuss the role of leadership in long-term care : Discuss the responsibilities of the governing body (develop mission/operational strategies, determine programs and services and monitor them)
Discuss the regulations concerning the governing body : Discuss the overall relationship between the governing body and administration. Discuss the regulations concerning the governing body.
Compute the annual contribution to the fund : The bond indenture requires an accumulation of funds of P5,000,000 in 5 years. Compute the annual contribution to the fund
Explain sandra feelings about dependency : Explain Sandra's feelings about dependency and loss of autonomy because she is unable to do her own activities of daily living any longer
Determine the net increase in share premium on July : Determine the net increase in share premium on July 1, 2020 due to the conversion of the bonds. Round off present value factors to four decimals
What two elements play significant role in sustaining change : What two elements do you believe play the most significant role in sustaining change? The concept of a "Just Culture" has a number of key elements.
Prepare an audit program that details the specific tests : Prepare an audit program that details the specific substantive tests you would apply to Nelson's accounts receivable and revenue for the December 31, 2020
Explain how could christian perspectives prevent employee : How could Christian perspectives prevent an employee from performing their required duties? What legal and ethical responsibilities do you have to ensure
What is the total accumulated depreciation as of December : The entity used the straight line method of depreciation with no residual value. What is the total accumulated depreciation as of December 31, 2021

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd