What is the equity component of the original issuance

Assignment Help Accounting Basics

Reference no: EM132789485

Problem 1: An entity issued 5,000 convertible bonds with P1,000 face amount per bond. The bonds mature in three years and are issued at 110. Interest is payable annually every December 31 at a nominal 6% interest rate. Each bond is convertible at anytime up to maturity into 100 shares with par value of P5. It is reliably determined that the bonds would sell only at P4,600,000 without the conversion privilege. What is the equity component of the original issuance of the convertible bonds?

Reference no: EM132789485

Questions Cloud

What is the amount of provision for decontamination should : Actual outflows be different from the estimate. What is the amount of provision for decontamination should DDD Company recognized on October 31, 20x8?

Describe the medical billing processes : The healthcare technology revolution continues in medicine. During the COVID-19 pandemic, the use of telehealth/telemedicine became an imperative.

What is the average life of a debt issue : What is the average life of a debt issue with a $100 million par value and a 10-year maturity with a sinking fund making equal payments in years 7 through 10?

Assess organization internal environment : Assess the organization's internal environment. Perform competitor benchmarking.

What is the equity component of the original issuance : The bonds would sell only at P4,600,000 without the conversion privilege. What is the equity component of the original issuance of the convertible bonds?

What amount of life insurance expense camay company should : Camay Company purchased a P4,000,000 ordinary life, What amount of Life Insurance Expense Camay Company should report in its December 31, 20x9 profit or loss?

Create an exploratory perceptual map for the product : Looking back at the health care organization you identified in the first assignment, choose a specific product offered by that organization.

Compute the annual loan repayment : 1. An investor borrowed KShs. 4 Millions for investment purposes at an interest rate of 12%. The loan is to be repaid within a period of eight years.

What amount of share premium should be recorded as result : When the bonds were originally issued, the equity component was recorded at P1,500,000. What amount of share premium should be recorded as result of conversion?

User Account

All Pages