Solution-Prepare the journal entry to record the first

Prepare the journal entry to record the first coupon payment

Assignment Help Financial Accounting

Reference no: EM132837436

Question - On September 30, 2020, Pivot Co. issued $1 million, 6%, 5-year convertible bonds maturing on September 30, 2025, with semi - annual coupon payments on March 31 and September 30. Each $1,000 bond can be converted into 110 no par value common shares. Gross proceeds on issuance were $1,150,000. Without conversion feature, the bond would be expected to yield 4% annually.

Pivot's year-end is December 31. On February 22, 2023 the shares of Pivot traded at $33 each on this day.

Required -

a. Determine how Pivot should allocate the $1,150,000 proceeds into its components.

b. Prepare the journal entries for fiscal 2020.

c. Prepare the journal entry to record the first coupon payment on March 31, 2021 (assuming reversing entries are not used).

d. Prepare the fiscal 2021 year-end entries related to this bond.

e. Prepare the journal entry to record the first coupon payment on March 31, 2022 (assuming reversing entries are not used).

Reference no: EM132837436

Questions Cloud

Prepare the selling and administrative expense budget : The sales budget shows 2,700 units are planned to be sold in July. Prepare the selling and administrative expense budget for July

Identify key communication methods you will use to market : Communication Methods - Identify the key communication methods you will use to market your new learning program, including advertising, direct response.

Social media publishing-5 lessons for brands : After critically reviewing "Social media publishing: 5 lessons for brands" analyze the article. Please use the Article Analysis Template below to answer the que

Explain why you decided to research the topic : The second part of this assignment requires that you select a topic in one of the chapters covered by this module and conduct research by visiting one of the.

Prepare the journal entry to record the first coupon payment : Prepare the journal entry to record the first coupon payment on March 31, 2021 (assuming reversing entries are not used)

Address an individual cultural needs : Also, how would you address integration into the organizational culture to prevent any misconceptions in the workplace?

What are the firm plans for global expansion : What are the firm's plans for global expansion? What types of opportunities and threats would prohibit Target from taking Walmart's route?

What are some commodities at risk : What are some commodities at risk of being produced with slave labour today?

Calculate the direct-material price and quantity variances : Calculate the direct-material price and quantity variances, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable

User Account

All Pages

Prepare the journal entry to record the first coupon payment

Reference no: EM132837436

Reference no: EM132837436

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