Prepare entries related to the bonds for the year

Assignment Help Accounting Basics

Reference no: EM132642816

Questions -

Q1. On August 1, 2012, White Co. acquired Black Co. bonds with a face value of P90,000 at 95 plus accrued interest. Interest of 12% per annum is payable semi-annually on April 1 and October 1. The bonds were issued on April 1, 2012. Bonds of P30,000 mature at annual interval beginning April 1, 2013.

Required:

a) Prepare the amortization table following the bond outstanding method.

b) Prepare entries related to the bonds for the year 2012-2014.

Q2. On June 30, 2012, the original issue date, Sellers Inc. purchased P500,000 of 10-year 12% convertible bonds at 104. The bonds are convertible into 50 shares of P10 par value ordinary shares for each P1,000 bond. The interest is payable semi-annually on June 30 and December 31. On March 31, 2013, Sellers Inc. converts P300,000 of the bonds. On March 31, 2013, the market price of the ordinary shares is P30 per share.

Required:

a) Prepare entries related to the convertible bonds for the year 2012-2013.

b) What is the gain or (loss) on the conversion of the bonds?

Reference no: EM132642816

Questions Cloud

Mean of a normal distribution : Does the mean of a normal distribution have an effect on its shape? Please explain your answer.

What the root node would be leaf terminal nodes : creating a decision tree based on the telescope observations, please describe what the root node would be, possible internal nodes, and leaf terminal nodes.

Determining the different serial numbers : Each digit of the serial number can be any number from 0 through 9. Digits can be repeated in the serial number. How many different serial numbers are possible?

Employee satisfaction program : A small company has 10 employees. Five of these employees will be selected randomly to be interviewed as part of an employee satisfaction program.

Prepare entries related to the bonds for the year : On August 1, 2012, White Co. acquired Black Co. bonds with a face value of P90,000 at 95 plus accrued interest. Prepare entries related to the bonds for year

Advantages and disadvantages of cloud-based storage : Discuss the advantages and the disadvantages of Cloud-Based Storage. Discuss the advantages and the disadvantages of Cloud-Based Databases.

Misinterpretation of statistical hypothesis testing : Give an actual example of a misuse/misinterpretation of statistical hypothesis testing (it could be univariate) had adverse outcomes. Include your sources

Find out the standard error change : A bootstrap sampling distribution for a mean was constructed with the following sample data:

Different common risk profile methodologies : The text names off three different common risk profile methodologies. Has this model been effective? Would you recommend a different approach?

User Account

All Pages