User Account

All Pages

Prepare the journal entry that olga should record

Assignment Help Accounting Basics
Reference no: EM132743663

Question: On December 31, 2019, OLGA Inc. sold convertible bonds to Nuttin Corp. for $38,375,000. The bonds have a face value of $40,000,000, a term of 10 years and coupon payments each June 30 and December 31 at 5% per annum. The yield to maturity on similar bonds without the conversion feature is 6%. The bonds are nconvertible into 10 common shares for each $1,000 bond. OLGA Inc. reports under IFRS.

Required: Prepare the journal entry that OLGA Inc. should record for the issuance of these bonds at December 31, 2019.

Reference no: EM132743663

Questions Cloud

What is a name for cds : A CDS with a number of reference entities provides for each reference entity a payoff if it defaults. What is a name for this CDS?
Explain financial administration and audit act of jamaica : The government of Jamaica is interested in setting up a new Internal Audit Department at the Ministry of Labour, because the previous department.
Estimate of the five-year cds spread : The five year swap rate is 4.5% and the five-year Treasury rate is 4%. What would be closest to your best estimate of the five-year CDS spread
How much should deposit monthly in an account yielding : How much should deposit monthly in an account yielding 3.91% so that there will be $100,000 in the account in 20 years? Provide the calculations.
Prepare the journal entry that olga should record : On December 31, 2019, OLGA Inc. sold convertible bonds to Nuttin Corp. for $38,375,000. The bonds have a face value of $40,000,000, a term of 10 years.
What must municipals offer for the investor to prefer : An investor is in a 30% tax bracket. If corporate bonds offer 9% yields, what must municipals offer for the investor to prefer them to corporate bonds?
What is the value of bond of mathew : Mathew purchased a $3500 bond paying 4.5% annual simple interest after graduating from college. It is now 35 years later and he decides to cash in the bond.
What amount will marigold receive : What amount will Marigold receive when it issues the bonds? (For calculation purposes, use 5 decimal places as displayed in the factor table provided)
What are the number of units and the cost of the goods : A company purchased merchandise to be resold at increasing costs during the year 2011. What are the number of units and the cost of the goods available for sale

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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