User Account

All Pages

Prepare the necessary journal entries

Assignment Help Accounting Basics
Reference no: EM133172659

Question - On January 1, 2020, ABC Company issued P50,000,000, 3-year convertible bonds at par with the following considerations:

(a) there were no issue costs related

(b) the coupon rate is 10%, payable annually in arrears on December 31

(c) the bond is redeemable at par on January 1, 2023

(d) bonds issued by similar companies without any conversion rights currently bear interest at 15%

Required - Prepare the necessary journal entries assuming the bondholders:

a. opted for conversion

b. opt for cash payment

Reference no: EM133172659

Questions Cloud

Determine what is the value of the shares to an investor : After that the dividend is expected to grow indefinitely by 5% per year for the foreseeable future. Determine what is the value of the shares to an investor
Legal and ethical issues applicable to the position : Effective planning is important in all areas of business, and human resources are no exception. Legal and ethical issues applicable to the position
What is digital business model : Read What Your Digital Business Model? (WYDBM?) Ch2 and answer the following questions:
Find the maturity of the current loan : Why can't a profitable company like Jackson repay its loan on time? What major company developments between August 2012 and May 2013 contribute to this situatio
Prepare the necessary journal entries : Prepare the necessary journal entries - bonds issued by similar companies without any conversion rights currently bear interest at 15%
Antitrust legislation and decisions : Find a recent (within the past year) article about an antitrust decision against a U.S.-multinational company by a foreign entity or country.
Prepare note amortization schedule for the first year : On January 1, 2017, a customer purchased a new P25,000 automobile, making a down payment of P1,000. Prepare note amortization schedule for the first year
What is the patent carrying value at december : Amortization will be taken over three years from that time. What is the patent carrying value at December 31, 2022
Access and review the whs evaluation report : Identify at least two areas of improvement in the WHSMP - Access and review the WHS Evaluation Report completed during Workplace Project Task

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