Provide journal entry using residual method

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Problem: Riverbed Corp. issued $10,000,000 of par value, 7% convertible bonds at 98. If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 92. Riverbed Corp. has adopted ASPE, and would like to explore all options available to report the convertible bond.

Required:

Question 1: Provide journal entry using residual method

Question 2: Provide journal entry using value equity component at zero

Reference no: EM132421156

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