What the conversion of the bonds to ordinary shares

Assignment Help Financial Accounting
Reference no: EM132947928

Question - Reds, Inc. had outstanding 10%, P1 million face value convertible bonds maturing on December 31, 2018 on which interest is paid June 30 and December 31. After amortization through June 30, 2016, the unamortized balance in the bond discount account was P30,000. The share premium from bond conversion privilege had a balance of P50,000. On that date, all of these bonds were converted into 40,000 ordinary shares with P20 par value. at that time, each share of Reds ordinary share capital sells for P23. Reds incurred expenses of P10,000 in connection with the conversion. What the conversion of the bonds to ordinary shares hall result to an increase in share premium?

Reference no: EM132947928

Questions Cloud

Calculate the percentage of the truck expense : On his tax forms from last year, he reported a truck expense of $2,971.50 for his business. Calculate the percentage of the truck expense
Define patient compliance : Define patient compliance. Explain the importance of professional commitment in developing patient education as a clinical skill.
Determine the amount of depreciation expense : Millar, Inc., purchased a truck to use for deliveries and is attempting to determine how much depreciation expense would be recognized
What are the similarities between all operations : What are the similarities between all operations and What do operations managers do and why is it so important
What the conversion of the bonds to ordinary shares : Reds incurred expenses of P10,000 in connection with the conversion. What the conversion of the bonds to ordinary shares hall result to an increase
How transformational leadership style may influence : How transformational leadership style may influence the process of investigating this professional nurse colleague that reports to one of your unit managers.
What is the estimated cost of missing inventory : To estimate the cost of missing inventory, the following were gathered: At December 31, 2019 what is the estimated cost of missing inventory
What is the gain on extinguishment of debt to be recognized : The unpaid interest on the note on such date is P500,000. What is the gain on extinguishment of debt to be recognized
List two national health goals that address children : List at least two national health goals that address children. A nurse is reviewing data that will assist with the development of a program to improve health

Reviews

Write a Review

Financial Accounting Questions & Answers

  Outline two mechanisms that an accountant working

Outline two mechanisms that an accountant working in a large accountancy firm could take to prevent unauthorized disclosure of confidential information.

  Describe process of arbitrage from levered to unlevered firm

Describe the process of arbitrage from levered to unlevered firm. Provide an example. Explain the process with the help of a numerical example.

  Integration of relevant research of accounting standards

ACCT3103 ACCOUNTING FOR COPORATE STRUCTURES - Problem is analysed with integration of relevant research of accounting standards and data

  What is the ytm of the bonds when are sold

Annual pay bonds with a face value of $1,000 and a coupon rate of 5.5%. The bonds will be sold for 940. What is the YTM of the bonds when they are sold?

  Make all journal entries required for year ended september

Make all journal entries required for the year ended September 30, 2020. Use Materials, Cash, Payables for costs incurred to date.

  How much will its income increase or decrease

The following operating information reports the results of McKinney Company’s production and sale of 16,000 air-conditioned motorcycle helmets last year. McKinney has sufficient idle capacity to fill the order, which would not affect the company’s co..

  Explain what are the steps to conducting tax research

What are the steps to conducting tax research in preparing for the audit? What are a tax practitioner's responsibilities when providing advice?

  Which of the entries to record the sale that tomfoolery make

Which of the entries to record the sale that Tomfoolery should make? Tomfoolery Ltd enters into a sale-and-leaseback arrangement for an aircraft it owns.

  Determine the contribution margin in dollars

In the month of March, Helen's Salon services 660 clients at an average price of $160. During the month, fixed costs were $21,700 and variable costs were 65% of sales. Determine the contribution margin in dollars, per unit, and as a ratio.

  What total amount of income from the investments

What total amount of income from the investments should be reported by the investor in the profit or loss for the year 2020

  How does the fluctuation in exchange rates affect butanta

How does the fluctuation in exchange rates affect Butanta's 2015 income statement? How does the fluctuation in exchange rates affect Butanta

  How do you calculate the rate of return

How do you calculate the intrinsic value of Apple using the asset valuation model? Also, how do you calculate the rate of return?

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd