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1) Presented below are three independent situations. igel Corporation retired Tk. 130,000 face value, 12% bonds on June 30, 2010, at 102.The ying value of the bonds at the redemption date was Tk. 117,500.The bonds pay annual rest, and the interest payment due on June 30, 2010, has been made and recorded. biaz Inc. retired Tk. 150,000 face value, 12.5% bonds on June 30, 2010, at 98.The carrying ie of the bonds at the redemption date was Tk. 151,000.The bonds pay annual interest, and interest payment due on June 30, 2010, has been made and recorded. laas Company has Tk. 80,000, 8%, 12-year convertible bonds outstanding. These bonds were | at face value and pay semiannual interest on June 30 and December 31 of cach year. The ds are convertible into 30 shares of Haas Tk. 5 par value common stock for each Tk. 1,000 th of bonds. On December 31, 2010, after the bond interest has been paid, Tk. 20,000 face ie bonds were converted. The market value of Haas common stock was Tk. 44 per share on ember 31, 2010.

1) Presented below are three independent situations. igel Corporation retired Tk. 130,000 face value, 12% bonds on June 30, 2010, at 102.The ying value of the bonds at the redemption date was Tk. 117,500.The bonds pay annual rest, and the interest payment due on June 30, 2010, has been made and recorded. biaz Inc. retired Tk. 150,000 face value, 12.5% bonds on June 30, 2010, at 98.The carrying ie of the bonds at the redemption date was Tk. 151,000.The bonds pay annual interest, and interest payment due on June 30, 2010, has been made and recorded. laas Company has Tk. 80,000, 8%, 12-year convertible bonds outstanding. These bonds were | at face value and pay semiannual interest on June 30 and December 31 of cach year. The ds are convertible into 30 shares of Haas Tk. 5 par value common stock for each Tk. 1,000 th of bonds. On December 31, 2010, after the bond interest has been paid, Tk. 20,000 face ie bonds were converted. The market value of Haas common stock was Tk. 44 per share on ember 31, 2010.

FINANCIAL ACCOUNTING
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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For each independent situation above, prepare the appropriate journal entry for the redemption or conversion of the bonds.

3. (a) Presented below are three independent situations. 1. Sigel Corporation retired Tk. 130,000 face value, 12% bonds on June 30, 2010, at 102.The carrying value of the bonds at the redemption date was Tk. 117,500.The bonds pay annual interest, and the interest payment due on June 30, 2010, has been made and recorded. 2. Diaz Inc. retired Tk. 150,000 face value, 12.5% bonds on June 30, 2010, at 98.The carrying value of the bonds at the redemption date was Tk. 151,000.The bonds pay annual interest, and the interest payment due on June 30, 2010, has been made and recorded. 3. Haas Company has Tk. 80,000, 8%, 12-year convertible bonds outstanding. These bonds were sold at face value and pay semiannual interest on June 30 and December 31 of cach year. The bonds are convertible into 30 shares of Haas Tk. 5 par value common stock for each Tk. 1,000 worth of bonds. On December 31, 2010, after the bond interest has been paid, Tk. 20,000 face value bonds were converted. The market value of Haas common stock was Tk. 44 per share on December 31, 2010.
Transcribed Image Text:3. (a) Presented below are three independent situations. 1. Sigel Corporation retired Tk. 130,000 face value, 12% bonds on June 30, 2010, at 102.The carrying value of the bonds at the redemption date was Tk. 117,500.The bonds pay annual interest, and the interest payment due on June 30, 2010, has been made and recorded. 2. Diaz Inc. retired Tk. 150,000 face value, 12.5% bonds on June 30, 2010, at 98.The carrying value of the bonds at the redemption date was Tk. 151,000.The bonds pay annual interest, and the interest payment due on June 30, 2010, has been made and recorded. 3. Haas Company has Tk. 80,000, 8%, 12-year convertible bonds outstanding. These bonds were sold at face value and pay semiannual interest on June 30 and December 31 of cach year. The bonds are convertible into 30 shares of Haas Tk. 5 par value common stock for each Tk. 1,000 worth of bonds. On December 31, 2010, after the bond interest has been paid, Tk. 20,000 face value bonds were converted. The market value of Haas common stock was Tk. 44 per share on December 31, 2010.
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