. On January 1, 2021, Bean Counters Co. issued a $10 million, 8%, nine-year convertible bond with annual coupon payments. Each $1,000 bond was convertible into 25 shares common shares. The convertible bonds were sold for $10.2 million. Bean Counters estimated that without the conversion feature, the bonds would have sold for $9,400,475 (to yield 9%). . On January 1, 2023, Bean Counters converted bonds 40% of the bonds. At the time of conversion, the shares were selling at $45 each. What is the amount Bean Counters Co. would debit to contributed surplus at the time of the conversion.

. On January 1, 2021, Bean Counters Co. issued a $10 million, 8%, nine-year convertible bond with annual coupon payments. Each $1,000 bond was convertible into 25 shares common shares. The convertible bonds were sold for $10.2 million. Bean Counters estimated that without the conversion feature, the bonds would have sold for $9,400,475 (to yield 9%). . On January 1, 2023, Bean Counters converted bonds 40% of the bonds. At the time of conversion, the shares were selling at $45 each. What is the amount Bean Counters Co. would debit to contributed surplus at the time of the conversion.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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