Prepare the journal entires by both gless and century

Assignment Help Accounting Basics
Reference no: EM131826117

Question - On Jan 1, 2011 Gless Textiles issued $12 milion of 9%, 10-year convertible bonds at 101. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of Gless's no par common stock. Bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). Century Services purchased 10%of the issue as an investment.

Question: On July 1, 2016, when Gless's common stock had a market price of $33 per share. Century converted the bonds it held. Prepare the journal entires by both Gless and Century for the conversion of the bonds (book value method).

Reference no: EM131826117

Questions Cloud

Display the distribution of scores : A survey given to a sample of 200 college students contained questions about the following variables.
Calculate the pv of the expected profits of the investment : Fred anticipates monthly revenues of $16,000. Calculate the PV of the expected profits of the investment?
Discussion - truth in advertising : Discussion TRUTH IN ADVERTISING - Infomercials often peddle products under the guise of "studies show Post a complete response to the question
Develop the five steps of the hypothesis analysis : Develop the five steps of the hypothesis analysis and determine if the is working as requested.
Prepare the journal entires by both gless and century : Prepare the journal entires by both Gless and Century for the conversion of the bonds (book value method)
About aging schedules is most correct : Which of the following statements about aging schedules is(are) most correct?
Predict the future viability of the organization : Predict the future viability of organization if no changes are made based on SWOT analysis, and provide an explanation of rationale supporting your projections.
Develop the five steps of the hypothesis analysis : Develop the five steps of the hypothesis analysis and determine if the project manager improved the rate from 20lb/hr.
Define cultural attitudes toward male and female sexuality : Select one contemporary cultural perspective on human sexuality listed in the text (e.g., sexual revolution, gay activism, sex research).

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the depreciation deduction

Compute the depreciation deduction for the computer system in 2006 and the cost recovery recapture. Assume that in 2004, Elaine had instead expensed under Section 179 the cost of the computer system. Compute the cost recovery recapture in 2006.

  What is reported as diluted earnings per share

The bonds were issued several years ago at face value. What is reported as diluted earnings per share (rounded)

  Navaro corporation reported the following plant assets

Journalize the transactions. Navaro uses straight-line depreciation for buildings and equipment

  Explain what it is how common the practice

One example of unethical activity is bribery. Explain what it is, how common the practice is, and where it is found. Justify your reasoning with at least 1 journal article.

  Under what circumstances is it appropriate to record

Under what circumstances is it appropriate to record goodwill in the accounts

  The board of directors is considering either a stock

The board of directors is considering either a stock split or a stock dividend.They understand that total stockholders' equity will remain the same under either action.

  Which statement is true with fair labor standards act

Fashion Industries, Inc. Which statement is true in accordance with the general rules of the Fair Labor Standards Act

  Gain or loss recognized on bond retirement

On February 1, 2010, Pat Weaver Inc. (PWI) issued 9%, $1,400,000 bonds for $1,700,000. PWI retired all of these bonds on January 1, 2011, at 102. Unamortized bond premium on that date was $142,800. How much gain or loss should be recognized on thi..

  Determine the balance in the retained earnings account

Determine the balance in the retained earnings account after the entries have been posted

  In their partnership agreement justin sarah and betsy

1 in their partnership agreement justin sarah and betsy agreed that justin should receive a salary allowance of 35000

  What pretax amount related to the lease

On June 30, 2011, Georgia-Atlantic, Inc., leased a warehouse facility from Builders, Inc. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $562,907 over a three-year lease terms, payable each June 30 and December..

  Problem regarding the particular financial statement

Describe how the financial statements (the income statement, statement of retained earnings, balance sheet and statement of cash flows) are interrelated.Provide at least two examples. If you were an investor, would you place more emphasis on any o..

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