Reference no: EM132820629
Question - On January 1, 2021, Barrett issued at 105, P10,000,000, 5-year, 8% convertible bonds. The bonds pay interest annually every December 31. Without the conversion option, the bonds would only sell at P9,241,842.65, or an effective rate of 10%. Each P1,000 bond is convertible into 80 of Barrett's P10 par ordinary shares. The holder of the bonds may, at their discretion, have their bonds converted into shares.
On December 31, 2021, after the payment of the annual interest, Barrett reacquired bonds having a face value of P2,000,000 at 106. On this date, the bonds have a fair value of 92 without the conversion option. On December 31, 2022, after the payment of interest, bonds having a face value of P1,000,000 were converted into shares.
On December 31, 2025, on the date of maturity, bonds having a face value of P4,000,000 were converted into shares. Barrett paid the remaining amount.
1. How much is the equity portion of the bonds?
2. Prepare the journal entry to record the retirement of the bonds on December 31, 2021.
3. How much is the interest expense incurred by Barrett in 2022?
4. Prepare the journal entry to record the conversion of the bonds on December 31, 2022.
5. How much is the unamortized discount on the bonds on December 31, 2023?
6. Prepare the necessary journal entries on December 31, 2025.
|
What is the net earnings from self employment income
: Assume his net profit is $100,000 for Year 3. There is $10,000 for Section 1231 gain. What is the net earnings from self employment income
|
|
How much should place in the account annually to cover
: How much should place in the account annually to cover his retirement needs. Your best friend Sam is in discussion with you about saving for his retirement
|
|
How application of rapid cycle improvement methods used
: Discuss how the application of rapid cycle improvement methods could be used to improve quality, safety, and overall health outcomes in low or middle income.
|
|
Prepare the entries of the company in connection with bonds
: Faith Company, Prepare the entries of the company in connection with the bonds for its 3 year term assuming the bonds were not converted.
|
|
How much is the equity portion of the bonds
: On December 31, 2025, on the date of maturity, bonds having a face value of P4,000,000 were converted into shares. How much is the equity portion of the bonds
|
|
How might you target the specific older adult population
: Local senior day program requests your assistance. The program is funded through Medicare, Medicaid, and private pay. Many of the seniors are high functioning.
|
|
Prepare the entries in connection with the issuance of bonds
: Prepare the entries in connection with the issuance of the bonds and the conversion of the bonds at the end of the current year.
|
|
What is the entry to record issuance of compound instrument
: What is the entry to record issuance of the compound instrument and the exercise of the 70% warrants? Assume also the expiration of the 30% warrants
|
|
Describe a concept in the course
: Describe a concept in the course that was new to you or seemed to be more important than most of the other concepts, such as ion channels, synesthesia, long-ter
|