Reference no: EM131975057
Problem
Schuss Inc. issued euro 3,000,000 of 10%, 10-year convertible bonds on April 1, 2015, at 98. The bonds were dated April 1, 2015, with interest payable April 1 and October 1. Bond discount is amortized semiannually using the effective-interest method. The net present value of the bonds without the conversion feature discounted at 12% (its market rate) was euro 2, 655, 888. On April 1, 2016, euro 1,000,000 of these bonds were converted into 30,000 shares of euro 20 par value ordinary shares. Accrued interest was paid in cash at the time of conversion.
Instructions
(a) Prepare the entry to record the issuance of the convertible bond on April 1, 2015.
(b) Prepare the entry to record the interest expense at October 1, 2015.
(c) Prepare the entry(ies) to record the conversion on April 1, 2016. (The book value method is used.)
|
What is cartwell taxable income for the year
: There were no other temporary or permanent book-tax differences. What is Cartwell's taxable income for the year
|
|
Annual interest rate for each credit rating category
: What is the effective annual interest rate for each credit rating category?
|
|
Finding the wacc for janicek power company
: Finding the WACC. Given the following information for Janicek Power Co., find the WACC. Assume the company's tax rate is 35 percent.
|
|
Sample proportion of those who prefer chocolate is greater
: If a sample of 100 Americans is taken, what is the probability that the sample proportion of those who prefer chocolate is greater than 0.30?
|
|
Prepare the entry to record the interest expense at october
: Schuss Inc. issued euro 3,000,000 of 10%, 10-year convertible bonds on April 1, 2015 at 98. Prepare the entry to record the interest expense at October 1, 2015.
|
|
What is the amount of its retained earnings
: Non current Liabilities 60,000. If Turner has total paid-in capital of $50,000 on December 31, what is the amount of its retained earnings
|
|
What the slope means with respect to the problem
: Use the Excel directions below to make a scatter plot for the Temperature in Fahrenheit and the number of cricket chirps per sec.
|
|
What is the bond price if the bond promised ytm
: A 15-year corporate bond pays $40 interest every six months. What is the bond's price if the bond's promised YTM is 5.5 percent?
|
|
What is the npv of the ten-year project
: What is the firm's WACC? Based on their Initial investment $1,000,000, what is the NPV of this 10- year project using the firm's WACC that you calculated in.
|