Answer only last subpartD QUESTION 3PART AOn 1 April 2019 White Bhd issued 1 million 5% convertible loan stock at RM1 million.The loan stock is redeemable at RM1 million for cash on 31 March 2023, or are convertibleinto 1 million new ordinary shares at that date. The interest is paid on 31 March each year.An interest rate on similar loan stock without the conversion option is 7% pa. Theexpectation is that loan holders will choose the conversion option rather than redeemingthe loan stock.Required:a) Calculate the equity and liability components of the 5% convertible loan stock on1 April 2019.b) Prepare the journal entries to record the transaction on 1 April 2019.c) Show the extracts from the statements of financial performance and the statementsof financial position for the year 31 March 2020.d) Assuming that all the loan stock holders choose to convert all their interests intoordinary shares on maturity, show the journal entries to record the transaction.

The conversion of loans and other liabilities into common shares of the business seems to be the…

On 1 April 2019 White Bhd issued 1 million 5% convertible loan stock at RM1 million. The loan stock is redeemable at RM1 million for cash on 31 March 2023, or are convertible into 1 million new ordinary shares at that date. The interest is paid on 31 March each year. An interest rate on similar loan stock without the conversion option is 7% pa. The expectation is that loan holders will choose the conversion option rather than redeeming the loan stock.

On 1 April 2019 White Bhd issued 1 million 5% convertible loan stock at RM1 million. The loan stock is redeemable at RM1 million for cash on 31 March 2023, or are convertible into 1 million new ordinary shares at that date. The interest is paid on 31 March each year. An interest rate on similar loan stock without the conversion option is 7% pa. The expectation is that loan holders will choose the conversion option rather than redeeming the loan stock.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter13: Marketable Securities And Derivatives

Section: Chapter Questions

Problem 30P

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QUESTION 3 PART A On 1 April 2019 White Bhd issued 1 million 5% convertible loan stock at RM1 million. The loan stock is redeemable at RM1 million for cash on 31 March 2023, or are convertible into 1 million new ordinary shares at that date. The interest is paid on 31 March each year. An interest rate on similar loan stock without the conversion option is 7% pa. The expectation is that loan holders will choose the conversion option rather than redeeming the loan stock. Required: a) Calculate the equity and liability components of the 5% convertible loan stock on 1 April 2019. b) Prepare the journal entries to record the transaction on 1 April 2019. c) Show the extracts from the statements of financial performance and the statements of financial position for the year 31 March 2020. d) Assuming that all the loan stock holders choose to convert all their interests into ordinary shares on maturity, show the journal entries to record the transaction.
Only typed answer A 9.50% coupon Hess Corp bond yields 1.47% and matures on April 21, 2023. A trade settles on July 22, 2018. Coupon interest is paid April 21 and October 21 of each year. What is the interest that the buyer must pay to the seller in addition to the offer price? Round to 2 decimal places. 23.33 is not the answer
Question 20 On Jan 01, 2020, ACME Incorporated issued $10 million of 6% convertible bonds at 100, which are due on December 31, 2029. The bonds pay interest semi-annually on June 30 and December 31. Each $1,000 bond can be converted to 20 common shares by at the discretion of the bondholder at any interest payment date. Similar bonds without the conversion feature are trading in the market at 8%. Assume that ACME follows IFRS. Required: Round interim calculations to four decimals and final answers to the nearest dollar. Show calculations to support your answers. 1. Prepare the journal entry for the issuance of the bonds. 2. Prepare the journal entry to record the conversion of 40% of the bonds on June 30, 2025. The carrying value after the interest payment was $9,256,467. 3. Prepare the journal entry to retire the bonds at maturity assuming that no other conversions took place. 4. What options would be available to the company if ACME followed ASPE?
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Question 1 of 17 -/1 E View Policies Current Attempt in Progress Sheridan Industries, Inc. issued $13,500,000 of 8% debentures on May 1, 2020 and received cash totaling $11,978,048. The bonds pay interest semiannually on May 1 and November 1. The maturity date on these bonds is November 1, 2028. The firm uses the effective-interest method of amortizing discounts and premiums. The bonds were sold to yield an effective-interest rate of 10%. Calculate the total dollar amount of discount or premium amortization during the first year (5/1/20 through 4/30/21) these bonds were outstanding. (Round answers to 0 decimal places, eg. 5,275.) Interest Cash Discount Carrying Date Expense Interest Amortized Value of Bonds 5/1/20 11/1/20 $ 24 24 5/1/21 Total $ Save for Later Attempts: 0 of 1 used Submit Answer MacBook Air
How much is the price of a P 100, 000.00 bond that pays a dividend of semi-annually redeemable at 110% on January 1, 2024 if it is bought on January 1, 2021, to yield an investor 4%, compounded semi-annually.
Problem 1 On January 1, 2020. Shrek Company purchased as a long-term investment P5,000,000 face value of Dunk Company's 8% bonds for P4,562,000. The bonds were purchased to yield 10% interest annually on December 31. The bonds mature on January 1, 2025. Shrek uses the effective interest method. What is the carrying amount of the investment (rounded to nearest P100) on December 31, 2021? a. 4,680,000 b. 4,662,000 C 4,618,000 d. 4,562,000 Problem 2-3 On January 1, 2016, Whistledown Company purchased 5-year bonds with face value of P8,000,000 and stated interest of 10% per year payable semiannually January 1 and July 1. The bonds were acquired to yield 8%. Present value of an annuity of 1 for 10 periods at 5% 7.72 Present value of an annuity of 1 for 10 periods at 4% Present value of 1 for 10 periods at 4% 8.11 0.6756 1. What is the purchase price of the bonds? a. 7,382,400 b. 8,617,600 C. 8,648,800 d. 7,351,200 2. What is the carrying amount of the bond investment on December 31, 2016?…