Reference no: EM132861076
Question - On January 1, 2020, Bonita Corporation issued a series of 500 convertible bonds, maturing in five years. The face amount of each bond was $1,000. Bonita received $527,000 for the bond issue. The bonds paid interest every December 31 at 4%; the market interest rate for bonds with a comparable level of risk was 3%. The bonds were convertible to common shares at a rate of ten common shares per bond. Bonita amortized bond premiums and discounts using the effective interest method, and the company's year-end was December 31.
On January 1, 2021, 100 of the bonds were converted into common shares. On June 30, 2021, another 100 bonds were converted into common shares. The bondholders chose to forfeit the accrued interest on these bonds.
On January 1, 2022, when the fair value of the bonds was $309,700 due to a decrease in market interest rates, a conversion inducement of $19/bond was offered to the remaining bondholders to convert their bonds to common shares. All of the remaining 300 bonds were converted into common shares at this time.
Required - Record all required journal entries to record the above transactions.
|
What will the entry be to replenish the petty cash fund
: Assume that the custodian of a $450 petty cash fund has $62 in coins and currency plus $383 in receipts. What will the entry be to replenish the petty cash fund
|
|
Demonstrate understanding and competence in the ability
: Demonstrate understanding and competence in the ability to complete it. Generally, a research proposal should contain all the key elements involved
|
|
Describe your experience in participating
: How would you describe your experience in participating in this course? How has your experience shaped your intention of how to participate in future courses?
|
|
Identify the unethical use of technology
: Identify the unethical use of technology and other ethical and diversity issues in the case and Demonstrate your critical thinking skills through analysis
|
|
Record all required journal entries to record transactions
: On January 1, 2021, 100 of the bonds were converted into common shares. Record all required journal entries to record transactions
|
|
How do disasters impact children
: What are some mental health effects for emergency responders during a disaster? How do disasters impact children?
|
|
What amount should be reported as accounts receivable
: At the end of the first year of operations, Majestic Company had accounts receivable of P6,000,000, What amount should be reported as accounts receivable
|
|
Analyze the issue of patient safety and quality
: Analyze the issue of ‘Patient Safety and Quality' to find out possible solutions that healthcare administrators can apply in their institution to guarantee high
|
|
What amount should company report as depreciation expense
: During 2019, the company purchased equipment costing P50,000, and sold equipment with a carrying value of P9,000. What amount should the company report
|