Solution-Prepare the entry to record the interest expense

Prepare the entry to record the interest expense at october

Assignment Help Financial Accounting

Reference no: EM132485944

Point 1: Aubrey Inc. issued $4,000,000 of 10%, 10-year convertible bonds on June 1, 2020, at 98 plus accrued interest. The bonds were dated April 1, 2020, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis.

Point 2: On April 1, 2021, $1,500,000 of these bonds were converted into 30,000 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion.

Instructions

Question a. Prepare the entry to record the interest expense at October 1, 2020. Assume that accrued interest payable was credited when the bonds were issued. (Round to nearest dollar.)

Question b. Prepare the entry(ies) to record the conversion on April 1, 2021. (Book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment has been made.

Why is the credit to discount on bonds payable amount for entry in part a 2712?

Reference no: EM132485944

Questions Cloud

Unit 26 industry-related project in hospitality assignment : Unit 26 Industry-related Project in Hospitality Assignment help and solution, BTEC Level 3 National Diploma in Hospitality - assessment writing service

What are the characteristics of preoperational : What are the characteristics of preoperational thought illustrated in each of these items?

Define what is generativity : Question 1: Define what is generativity? Question 2: Describe how personality contributes to generativity.

Examine a modern political issue of racism : The paper should examine a modern political issue of racism and apply the philosophy of both philosophers John Locke and Thomas Hobbes.

Prepare the entry to record the interest expense at october : Prepare the entry to record the interest expense at October 1, 2020. Assume that accrued interest payable was credited when the bonds were issued

Discuss the subtypes of adhd as noted in the dsm v : Describe/discuss the subtypes of ADHD as noted in the DSM V. Note implications on the work of coaches working with athletes who may have the various subtypes.

Write description and definition of the condition : Brief contribution to the description and definition of the condition. Discuss at least one major theoretical approach to explaining and resolving the life.

Compare and contrast the theories of piaget-vygotsky : What do you view as the main differences between these three theories if you were working with a child in this age range?

What is the new return on equity : What is the New return on equity? uses this money to retire debt, additional $12 million of common stock and what happens to the expected return on the stock?

User Account

All Pages

Prepare the entry to record the interest expense at october

Reference no: EM132485944

Reference no: EM132485944

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT