Reference no: EM132448640
Question - On January 1, 2016, when its $30 par value common stock was selling for $80 per share, Indigo Corp. issued $11,300,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation's common stock. The debentures were issued for $12,204,000. The present value of the bond payments at the time of issuance was $9,605,000, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2017, the corporation's $30 par value common stock was split 2 for 1, and the conversion rate for the bonds was adjusted accordingly. On January 1, 2018, when the corporation's $15 par value common stock was selling for $135 per share, holders of 30% of the convertible debentures exercised their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums.
Prepare the entry to record the original issuance of the convertible debentures?
Prepare the entry to record the exercise of the conversion option, using the book value method?
Calculate the average inventory amount
: Zhang Company reported Cost of goods sold of $841,000, beginning Inventory of $38,400 and ending Inventory of $46,900. Calculate the average Inventory amount
|
BISY3003 Information Systems Project Assignment
: BISY3003 Information Systems Project 2 (Capstone) Assignment Help and Solution, Australian Institute of Higher Education - Assessment Writing Service
|
Discuss recommendations make chief financial officers
: Discuss the advantages and the disadvantages of leasing for a lessee. Discuss the advantages and the disadvantages of leasing for a lessor.
|
Compute the weighted-average number of shares outstanding
: Novak Corporation had 294,000 shares of common stock outstanding on January. Compute the weighted-average number of shares outstanding
|
Prepare the entry to record the original issuance
: On January 1, 2016, when its $30 par value common stock was selling for $80 per share, Prepare the entry to record the original issuance
|
Explain which type of bankruptcy requires the liquidation
: Which type of bankruptcy requires the liquidation of most of your assets.An installment loan is a loan that requires a borrower to pay
|
Prepare journal entries relating to the stock option plan
: Prepare journal entries relating to the stock option plan for the years 2018, 2019, and 2020. Assume that the employee performs services equally in 2018
|
Make journal entries to record the restricted stock
: Make journal entries to record the restricted stock on January 1, 2017 (the date of grant), and December 31, 2018
|
Prepare a flexible budget report for the year
: Were management's decisions to stay competitive sound? What course of action do you recommend for the management of Green Pastures?
|