Make the journal entry to record the conversion of bonds

Assignment Help Financial Accounting
Reference no: EM132608723

On December 31, Year 1, ATAL Corporation, a public company, issues ten-year convertible bonds with a face value of $2,000,000 and a stated rate of 8%, paid semiannually on June 30 and December 31. The bonds mature on December 31, Year 11. The bonds are issued to provide an effective yield of 7%. If these bonds did not have a conversion feature, the company would have to issue the bonds to yield 9% to attract investors. On December 31, Year 5, 60% of the bonds are converted to common shares.

Required:

Question (a) Prepare the journal entry(ies) to record the issuance of the bonds.

Question (b) Prepare the journal entry(ies) to record the conversion of the bond, December 31, Year 5

Reference no: EM132608723

Questions Cloud

Provide a critical analysis and review of one current issue : Critical synthesis of the literature, with conclusions drawn. Please refer to the QManual, in this Moodle section for guidance on how to construct a report.
Calculate Terry net pay : He pays $25.50 in union dues per pay period. Calculate Terry's net pay; He lives in Alberta and is a claim code 3 for both Federal and Alberta
What is the annual dividend on the preferred shares : Preferred shares issued at $100, and 50,000 common shares issued at $1, at December 31, 2021. What is the annual dividend on the preferred shares?
Which situation indicating that control over good or service : Which situation indicating that control over goods or services transfers over a period of time? Customer purchases a mattress and picks it up immediately.
Make the journal entry to record the conversion of bonds : On December 31, Year 1, ATAL Corporation, Prepare the journal entry(ies) to record the conversion of the bond, December 31, Year 5
Information security vulnerability analysis tool : How widely is it used? How reliable is it in practice? What is its commercial availability? Does it scale well?
What is the weighted average after tax cost of capital : Short Term Debt with a cost of 7%, and $2 million preferred stock with a cost of 3%, what is the Weighted Average after tax Cost of Capital?
ERM at Malaysia Media company Astro : Case study on ERM at Malaysia's Media company Astro. how ERM can be used to assess portfolio performance.
Find tony will record property tax expense of : According to the bill, taxes of $24,000 for the year ended December 31, 2021 are due by April 30, 2021. On March 1, Tony will record property tax expense of

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