User Account

All Pages

Prepare the journal entry at conversion date

Assignment Help Accounting Basics
Reference no: EM133004501

Question - On January 1, 2021, the company issued 10% 3-year 1,000,000 convertible bond at 102. Each 1,000 bond is convertible into 8 shares with par value of 100 per share. On issuance date, the bonds were selling at 98 without the conversion option. The entity incurred 50,000 transaction cost on the issuance. On December 31, 2022, the bonds were converted into shares incurring an issuance cost of 80,000.

Requirements -

1. Prepare the amortization table.

2. Prepare the journal entry at conversion date.

Reference - Intermediate Accounting 2 by Millan: Notes and Bonds Payable.

Reference no: EM133004501

Questions Cloud

What are the three categories of ratios : What are the three categories of ratios that can be used to analyse a business? What is considered a stable financial stability ratio
Record the accounts receivable as of may : Record the Accounts Receivable as of May 31, 2021. In May 2021, the paint mixing equipment maintenance services company, Colorín Color S.A
Find the dollar rate of return : One year later, the equity price moved to £45, and the spot exchange rate became £0.60/$1.00. Find the dollar rate of return
What is harmer tax benefit from the options : Assuming Harmer issues NQOs, what is Harmer's tax benefit from the options for each employee in the year each employee exercises the NQOs?
Prepare the journal entry at conversion date : Question - On January 1, 2021, the company issued 10% 3-year 1,000,000 convertible bond at 102. Prepare the journal entry at conversion date
What is the percent effective interest rate per year : What is the percent effective interest rate per year? On April 1 2019 you plan to buy a motorcycle for Rp. 20,000,000. You borrow money from a bank in amount.
What the adjusting journal entry to record would include : What the adjusting journal entry to record this would include? At the end of the year, a supply count shows the balance to be $1,000.
What are the basic elements of auditor report : What are the basic elements of auditor's report? Explain briefly. What do you understand from the above one section of auditor's report
Describe the arbitrage opportunity that is available : A four-month European call option, Describe the arbitrage opportunity that is available and demonstrate the effects of the strategy at the expiration.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is walsec incs life cycle budgeted revenues

In the first year of sales, Walsec Inc. intends to sell each wallet for $60. What is Walsec Incs life cycle budgeted revenues

  What differences between basic and diluted earning per share

What are the differences between basic and diluted earnings per share? What are the differences between the numerator and the denominator in the basic and diluted earnings per share calculations?

  Describe the most significant leadership challenges facing

describe the most significant leadership challenges facing organizations today. are you optimistic that these

  What are the book values per share of the preference shares

If two years' preference dividends are in arrears and the preference shares has a liquidation value of P110 per share, what are the book values per share

  How much is the share of each partner in partnership profit

Assume that the profit after deducting salaries, interest, and bonus is P 200,000, how much is the share of each partner in the partnership profit?

  How will strive to make decisions in the future

How you will strive to make decisions in the future. Describe the Quantitative or qualitative nature of decisions and Process for decision making

  Calculate the amount of bad and doubtful debts expense

Calculate the amount of Bad and Doubtful Debts expense included in Operating Expenses in the 2017 Statement of Financial Performance

  Review parties who contributed to his ability to commit acts

Describe a reason why someone who has been entrusted with the firm's assets would commit a fraudulent act against the company.

  What is the future value placed in a savings account

What is the future value of $1000 placed in a savings account pays 10%, compounded quarterly? Your answer should be correct to two decimal places.

  Journalize the entries as of june to record the revaluation

Journalize the entries as of June 30 to record the revaluations, using a temporary account entitled Asset Revaluations

  What accounts and assertions are likely to be affected

What accounts and assertions are likely to be affected? Explain. The discussions with management indicate that there is a risk the client will capitalise

  Describe the comparable uncontrolled price method

Superior Brakes Corporation manufactures truck brakes at its plant in Mansfield, Ohio, at a cost of $10 per unit. Superior sells its brakes directly to U.S.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd