Bianca Capital issued 500, $1,000 convertible bonds at 103. Each bond will beconverted to 10 common shares.• After issuance, similar bonds were sold at 97, and the shares had a fair value of$2.50.• Bianca paid $530,000 in cash to the bondholders to retire the bonds early.. On retirement date, the bonds had a carrying value of $489,100 and fair value of$492,370..Bianca is following ASPE and using the book value method.Required: Record the retirement of bonds

GIVEN Bianca Capital issued 500, $1,000 convertible bonds at 103. Each bond will be converted to…

Answered: . • Bianca Capital issued 500, $1,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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On 3/1/21, Lansing Company sold 6.5% bonds having a maturity value of $800,000 at a price which provides the bondholders with a 5% yield. The bonds are dated 3/1/21 and mature 3/1/26 with interest payable semiannually on 3/1 and 9/1 of each year. Legal and other costs of $12,000 were incurred in connection with the issue. Questions: a. Prepare the amortization table and all journal entries required in 2021. b. The bonds are callable at 101, and on 6/1/23 Lansing called the bonds and retired them. Prepare all journal entries required in 2023.
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2. On January 1, 20X1, Toy inc. Issued $500,000 of convertible bonds. The bonds mature on December 31, 20X5, Interest is payable annually at 6.0% on December 31. The bonds are convertible at the investor's option at the rate of 20 common shares for each $1,000 bond. Similar bonds without the conversion option were selling for $475,000 at time of issuance. Transaction costs of $10,000 were incurred. Required Prepare the journal entry to record the issuance of the bonds.
53.On January 1, 2020, ABC purchased bonds with a par value of $ 700,000 for $ 666,633. The nominal interest rate on the bonds was 12% and the market interest rate was 14%. The bonds pay interest on June 30 and December 31. What will be the interest income that ABC will report in its 2020 income and expense statement? Select one: a $ 93,655. b. $ 84,000. c. $ 46,664. d. $ 42,000.
Nichols Corporation has the following convertible bonds. A $100,000 convertible bond was issued at par on January 1, 2021, at 4%. The bond is convertible into 30,000 shares of common stock. Additionally, there was a convertible bond that was purchased on November 1, 2021, at par, for $200,000 with an interest rate of 6%, this bond is convertible into 20,000 shares of common stock. Both bonds pay interest annually. Nichols Corporation has total revenue of 800,000 and expenses of 400,000, which does not include interest expense or taxes. The tax rate is 40%. Additionally, the organization currently has 300,000 shares of common stock outstanding for the entire year. No dividends were paid in 2021. A. Calculate Earnings per share. B. Calculate Dilutive Earnings per share using the if converted method.
devra
On 01-01-18, O issued $8,000,000 of its 4%, 6-year callable term bonds dated 01-01-18. The bonds pay interest every July 01 and January 01 and mature on 01-01-24. O can call in the bonds any time after 01-01-21 at 103 plus interest. At the time O issued the bonds, similar bonds paid 4%. Upon issuing the bonds, O incurred and paid $75,000 of bond issuance costs. O uses the effective-interest method to amortize any bond discount or premium. O prepares AJES only as of every December 31. On 03-01-21, G called in $4,000,000 of the bonds at the call price of 103 plus interest. Prepare the entries O should make on: а. 01-01-18 5. 12-31-18 С. 03-01-21 d. 07-01-21 е. 12-31-21
Zhang Company, an IFRS company, sold $7,000,000 of 6%, 3-year bonds on January 1, 2022. The bonds pay interest each December 31. It cost the company $30,000 in bond issue costs. The bonds were sold at par. What is the effective interest rate for the bonds? Group of answer choices 8.52% 5.84% 6.16% 6.14%

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