Waterway Inc. issued $3,830,000 par value, 7% convertible bonds at 98 for cash. If the bonds had not included the conversion feature, they would have sold for 95. Prepare the journal entry to record the issuance of the bonds. Account Titles and Explanation Debit Credit
Q: Crane Company has $3930000 of 7% convertible bonds outstanding. Each $1,000 bond is convertible into…
A: Explanation: The Amount on Bonds payable and the premium on bonds payable Both are accounted as…
Q: Teal Corporation sold 160 convertible, 10-year bonds at par for $160,000. Each bond pays 4% annual…
A: Bond Accounting refers to the recording of bond related transactions i.e. issuance of bonds at par,…
Q: On January 1, 2016, Saul Company issued convertible bonds with a face amount of P 5,000,000 for P…
A: Convertible Bond If the bond are issued in the convertible basis then it allows to convert into…
Q: On January 1, 20x1, an entity issues 14%, 3-year, P5,000,000 bonds at a price that reflects a yield…
A: Par value (FV) = P 5,000,000 Coupon rate = 14% Annual coupon amount (C) = 5,000,000*0.14 = P…
Q: At the beginning of current year, Jackfrost Company issued 5,000 convertible bonds payable. The…
A: Compound Financial Instrument is an instrument with some option or warrant attached to it. It has…
Q: vertible into 10 ordinary shares of P50 par value. On July 1, the interest was paid to bondholders,…
A: Solution: Calculation of increase in share capital and increase in share premium: Particulars…
Q: On July 1, 2020, 2-SO Company issued 10% bonds with a maturity value of P5,000,000 together with…
A: Premium on Issue of Ordinary Shares = ( Issue Price - Par Value ) x Number of Shares Computation…
Q: Medhurst Corporation issued $92,700 in bonds for $90,000. The bonds had a stated rate of 10% and pay…
A: Premium (Discount) on bonds issue = Selling price of the bonds - Face value of bonds = $90,000 -…
Q: On 1 January 2008, Gomez & Co. issued its 10% bonds in the face amount of P4,000,000, which mature…
A: Amortization of bond premium = Interest payment - Interest expense where, Interest expense =…
Q: Palestine, Inc. issued JOD2,000,000 par value, 7% convertible bonds at 99 for cash. The net present…
A: Bonds are a form of debt or loan issued by the company on which company has to make regular interest…
Q: If $500,000 par value bonds with a carrying value of $499,000 are redeemed at 103, the company will…
A: When company redeemed the issued bond then gain/loss needs to record by the company is the…
Q: XYZ Inc issued 445 convertible bonds - each at a price of 101.95% of the $1,000 face value. At…
A: A bond may be regarded of as an I.O.U. between the debtor and creditor including the loan…
Q: For each of the unrelated transactions described below, present the entries required to record each…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: For each of the following situations, calculate the amount of bond discount or premium, if any. gray…
A: When the bonds are issued at a price lower than the face value of the bond, they are said to be…
Q: At the beginning of current year, Sandy Company issued 5,000 convertible bonds payable. The bonds…
A: Convertible bonds are fixed-income security or debt that earns a fixed rate of interest & can be…
Q: Lavish Ltd. issued $4,000,000, six-year, 8% convertible bonds at par. Bonds pay interest annually.…
A: Convertible bonds are corporate bonds that can be exchanged for the issuing company's common stock.…
Q: (Issuance and Conversion of Bonds) For each of the unrelated transactions described below, present…
A: As posted multiple questions, as per our guideline policy we are answering only one question…
Q: On January 1, 2018, Madison Products issued $40 million of 6%, 10-year convertible bonds at a net…
A:
Q: Sepracor, Inc. called its convertible debt in 2007. Assume the following related to the transaction:…
A: Bonds refer to a financial instrument that is issued by the bond issuer to the bondholder when the…
Q: Your company sells $41,000 of one-year, 12% bonds for an issue price of $39,500. The journal entry…
A: Discount on bonds = Face value - issue price = $41,000 - $39,500 = $1,500
Q: Bonds Payable has a balance of $962,000 and Premium on Bonds Payable has a balance of $10,582. If…
A: A bond is basically an interest-bearing loan instrument that is issued by the companies in order to…
Q: Whispering Corporation sold 140 convertible, 10-year bonds at par for $140,000. Each bond pays 3%…
A: Solution:- Preparation of journal entry to record the issuance of the bonds as follows under:-
Q: During 20x9, Oceanic Co. Issued 3,000 of its 9%, ₱1,000 face value bonds at 1011/2. In connection…
A: During 20x9, Oceanic Co. issued 9% 3000 bonds. Issued price = P101.5 Issued price of bonds = P101.5…
Q: On May 1, 2011, Stone Corporation issued $4 million of 10-year, 6% convertible bonds at 101. The…
A: Convertible bonds are described as those types of bonds which can be converted into predetermined…
Q: Partially correct answer iconYour answer is partially correct. Sweet Company issued $11,000,000 par…
A: calculate the value of bonds: value of bonds = $11,000,000 * (97 /100) Value of bonds = $11.000.000…
Q: On January 1, 20x2, Gelato Company issued convertible bonds with a face amount of P5,000,000 for…
A:
Q: A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The…
A: The difference between the par value received on bonds issued and the premium on bonds payable…
Q: For each of the unrelated transactions described below, present the entry(ies) required to record…
A: As posted multiple questions, as per our guideline policy we are answering only one question…
Q: For each of the unrelated transactions described below, present the entries required to record each…
A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…
Q: Suppose Google, Inc. called its convertible debt in 2017. Assume the following related to the…
A: Bond $ 3,900,000 Debt Conversion Expense $ 33,000 Discount on Bonds Payable $ 24,000…
Q: AI Tool and Dye issued 8% bonds with a face amount of $160 million on January 1, 2016. The bonds…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…
Q: Richmond Co. sold convertible bonds at a premium. Interest is paid on May 31 and November 30. On May…
A: Convertible Bonds: Convertible bonds are long-term debts issued by a corporation carrying a fixed…
Q: For each of the unrelated transactions described below, present the entries required to record each…
A: ANSWER 1 : Account title Debit Credit Cash [18,800,000 *0.99] 18,612,000 Discount…
Q: On December 31, 2011, Cey Company had outstanding 10%,P1,000,000 face amount convertible bonds…
A: Share Premium: The difference between the par value of a firm's shares and the total money collected…
Q: For each of the unrelated transactions described below, present the entries required to record each…
A: A bond is a fixed pay instrument issued to represent to an advance made by a financial specialist to…
Q: For each of the unrelated transactions described below, present the entries required to record each…
A: In entry 1 ) Bonds payable = $ 18800000 Cash = $ 18800000 * 99% = $ 18612000 Discount on bonds…
Q: On January 1, 2016, Saul Company issued convertible bonds with a face amount of P 5,000,000 for P…
A: Convertible bonds are the bonds that contain an underlying option with the bondholder that allows…
Q: ement: Prepare Journal Entries on June 1 and selling of warrants.
A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…
Q: Archer Company issued $4,000,000 par value, 7% convertible bonds at 99 for cash. The net present…
A:
Q: I. Metro Company purchased $500,000, 10%, 5-year bonds on January 1, 20x1, with interest payable on…
A: Bond refers to a fixed income instrument which represents that a loan is being made by an investor…
Q: On January 2, 2001, Northern Co. issued 9% bonds in the amount of ₱500,000, which mature on January…
A: As per the equity method, the value of the financial liability is recognized at fair value and that…
Q: Archer Inc. issued $4,000,000 par value, 7% convertible bonds at 99 for cash. If the bonds had not…
A: Working note 1: Compute the discount on issue of bonds.
Q: On January 1, 2016, Saul Company issued convertible bonds with a face amount of P 5,000,000 for P…
A: Bond premium The bond premium is the excess paid amount over the par or face value for the bond. It…
Q: On January 1, 2016, Saul Company issued convertible bonds with a face amount of P 5,000,000 for P…
A: Loss on extinguishement of convertible bonds on December 31,2018 = carrying amount as on date -…
Q: For each of the unrelated transactions described below, present the entries required to record each…
A: 1. Sage Corp. issued $20,100,000 par value 10% convertible bonds at 98. If the bonds had not been…
Q: or each of the unrelated transactions described below, present the entries required to record each…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: On January 1, 2016, Madison Products issued $40 million of 6%, 10-year convertible bonds at a net…
A: Requirement 1:Prepare the journal entry to record the issuance of convertible bonds.
Q: At the beginning of the current year, ABC Corporation issued 6,000, 5-year bonds, face value 1,000…
A: Given information, Face value of bonds=6,000*1,000=6,000,000 Cost of the bonds…
Q: For each of the unrelated transactions described below, present the entries required to record each…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Waterway Inc. issued $3,830,000 par value, 7% convertible bonds at 98 for cash. If the bonds had not included the conversion feature, they would have sold for 95.
Prepare the
|
Account Titles and Explanation
|
Debit
|
Credit
|
|---|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Willoughby Inc. issued 100 bonds with a face value of $1,000 and a stated rate of 4% and received $105,000. What is the journal entry to record the sale of the bonds?Bonds Payable has a balance of $802,000 and Discount on Bonds Payable has a balance of $9,624. If the issuing company redeems the bonds at 98, what is the amount of gain or loss on redemption?Help me
- Cullumber Corporation issues $430,000 of bonds for $447,200. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation eTextbook and Media List of Accounts Debit CreditCarla Vista Co. issues $345,000, 20-year, 9% bonds at 103. Prepare the journal entry to record the sale of these bonds on June 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Enter an account title enter a debit amount enter a credit amount Enter an account title enter a debit amount enter a credit amount Enter an account title enter a debit amount enter a credit amountBonds Payable has a balance of $952,000 and Premium on Bonds Payable has a balance of $10,472. If the issuing corporation redeems the bonds at 102, what is the amount of gain or loss on redemption?
- On January 1, Pina Inc. issued $101050000, 9% bonds at 103. The journal entry to record the issuance of the bonds will include O a credit to Bonds Payable for $104081500. a credit to Interest Expense for $3031500. O a credit to Premium on Bonds Payable for $3031500. O a debit to Cash for $101050000.Metlock Inc. issued $3,830,000 par value, 7% convertible bonds at 98 for cash. If the bonds had not included the conversion feature, they would have sold for 95. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit CreditMission Furniture issued $500,000 in bonds payable at par. The journal entry to record asemiannual interest payment on these bonds woulda. debit Cash and credit Interest Payable.b. debit Cash and credit Interest Expense.c. debit Interest Expense and credit BondsPayable.d. debit Interest Expense and credit Cash.
- Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call premium of $10,000. The bonds have a carrying value of $990,000. We call these bonds prior to maturity on September 30. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. View transaction list Journal entry worksheet Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call premium of $10,000. The bonds have a carrying value of $990,000. We call these bonds prior to maturity on September 30. Note: Enter debits before credits. %24 .. 1:46 P %3D 3/28/202 F3 F4 F5 F8 F9 F10 F11 F12 Insert Fn Lock F6 F7 Prt ScShow Me How Redemption of Bonds Payable An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank.Wildhorse Corporation issued $300,000 of 10-year bonds at a discount. Prior to maturity, when the carrying value of the bonds was $283,500, the company redeemed the bonds at 96. Prepare the entry to record the redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable Debit Credit