1. Determine the value to be assigned to the bonds and the warrants and prepare the journal entry to record the issuance of the convertible bonds. 2. Assume that 4,000 warrants are subsequently exercised on July 1, 2021. Prepare the journal entry for the issuance of the common stock.

Q: On January 1, 2020, Pronghorn Company purchased 6% bonds, having a maturity value of $550,000 for…

A: Investment means an asset purchased in expectation of earning a return on such investment in future…

Q: On December 1, 2020, the ABC corporation issued 500 bonds with a par value of $ 1,000 at 9%, at 103.…

A: Bonds: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and…

Q: On May 1, 2020, Forest Company issued 3,000 $1,000 bonds at 102. Each bond was issued with one…

A: Market Value of Warrants = No. of bonds x   fair value = 3,000 x $30 = $90,000 Market Value of Bonds…

Q: On January 1, 2022, Bramble and Lois Company purchased 12% bonds having a maturity value of $234,000…

A: The bonds are issued or purchased either at discount or at a premium. The bond amortization table is…

Q: On July 1, 2021, an interest payment date, $148000 of Bramble Corp. bonds were converted into 2930…

A: Explanation: Value = Value of Bonds - Conversion Value - Unamortized Discount Value = $148000 -…

Q: On July 1, 2023, Riverbed Aggregates Ltd. purchased 6% bonds with a maturity value of $125,000 for…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: On January 1, 2014, Dubai Corporation purchased 12% bonds, having a maturity value of $600,000, for…

A: Bonds receivable: It is an investment in bonds of an organization which pays a fixed rate of…

Q: On January 1, 2020, ABC Company issued 5,000 of its 12%, P1,000 face value bonds for P5,350,000…

A: Accrued Interest on Bond: Accrued interest is the amount of interest earned on a debt(Bond) which is…

Q: (a) (b) (c) Prepare the journal entry at the date of the bond purchase. Prepare the journal entries…

A: Bonds represent debt securities utilized by governments, municipalities, or corporations to procure…

Q: On July 1, 2020, Tealight Company issued 2,000 $ 1,000 bonds at 103. Each bond was issued with one…

A: The process of recording financial activity for the first time in the books of accounts is known as…

Q: The Golden Company issues $518,000 of 12%, 10-year bonds at 103 on March 31, 2025. The bonds pay…

A: The objective of the question is to determine the correct journal entry to record the issuance of…

Q: On January 1, 2020, Cheyenne Company purchased 4% bonds, having a maturity value of $420,000 for…

A: Journal entry is the procedure for initially documenting commercial transactions in the books of…

Q: On January 1, 2025, Oriole Company purchased at par 8% bonds having a maturity value of $260,000.…

A: Bonds means the instrument where the bond holder gives money to bond issuer and in return bond…

Q: Required: 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June…

A: The financial instrument which provides fixed interest as a return over the period of investment is…

Q: Swiss Inc. sold 20-year bonds with a total face amount of $401,000 and a stated rate of 7.5%. The…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: General Corporation purchased $938,000 of bonds with a coupon rate of 10% at face value on December…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: The Gonzalez Group issued $980,000 of 9% bonds on June 30, 2024, for $1,076,985. The bonds were…

A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: On May 1, 2021, Sunland Company issued $1430000 of 7% bonds at 102, which are due on April 30, 2031.…

A: A discount bond being a bond that is traded on the secondary market for less than its par value or…

Q: On January 1, 2024, Solo Incorporated issued 1,600 of its 8%, $1,000 bonds at 98.5. Interest is…

A: When bonds are issued at a discount it means they are sold at a price below their face value. The…

Q: a. Matthew Young Co. sold $1,890,000 of 12%, 10-year bonds at 105 on January 1, 2025. The bonds were…

A: Since you have posted multiple questions, we can only provide the solution to the first question…

Q: On July 1, 2020, an interest payment date, $200,000 of Pride Co. bonds were converted into 12,000…

A: When the bonds were converted into equity shares then the balance in Unamortized premium on bonds…

Q: Adam Corporation purchased 1,000 bonds of Quick Corporation in 2018 for $800 per bond and classified…

A: As per the accounting standard the securities are recorded in books two ways either as held to…

Q: Ivanhoe Company issues $3,000,000, 10-year, 8% bonds at 93, with interest payable each January 1.…

A: The bonds are the financial instruments for the business used to raise money from the market. The…

Q: The Gorman Group issued $810,000 of 11% bonds on June 30, 2021, for $879,498. The bonds were dated…

A: The journal entries are prepared to keep the record of day to day transactions of the business.  The…

Q: On January 1,2019, ABC Corporation issued a 5-year, 12%, 1,000 of the P 5,000 face value bonds with…

A: Carrying value of the bonds as of December 31,2020 = Present value of principal + Present value of…

Q: On January​ 1, 2023, Jones Corporation issued​ $2,982,000, 9%, 5 - year bonds with interest payable…

A: Bonds is a long-term debts issued by the government and companies to raise funds for their…

Q: On January 1, 2020, Oriole Company purchased 6% bonds, having a maturity value of $620,000 for…

A: Solution A Bond represents a loan to company or government in return of this company pay a fixed…

Q: On January 1, 2025, Swifty Company purchased 12% bonds having a maturity value of $312,000 for…

A: Investment means an asset purchased in expectation of earning a return on such investment in future…

Q: On January 1, 2020, Ayayai Company purchased 9% bonds having a maturity value of $250,000, for…

A: Bonds are debt securities issued by governments, municipalities, corporations, or other entities to…

Q: On January 1, 2020, Grouper Company purchased 12% bonds having a maturity value of $350,000, for…

A: The below journal entries are passed to show the treatment of interest revenue and premium…

Q: On January 1, 2020, Windsor Company purchased 10% bonds having a maturity value of $340,000, for…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On January 1, 2020, Sunland Company purchased 8% bonds having a maturity value of $ 400,000, for…

A: The purchase of a bond as an investment is recorded at purchase price. The bond may be at a discount…

Q: On January 1, 2025, Indigo Company purchased 12% bonds having a maturity value of $310,000 for…

A: Unrealized gain means the value rise in asset value that has not yet been realized through sale or…

Q: On January 1, 2020, Ehrlich Corporation issued 7%, 15-year bonds with a face amount of $5,000,000 .…

A: The bonds are the financial instruments that are issued to raise money from the market or investors.…

Q: sota and Lois Company purchased 12% bonds h 30. The bonds provide the bondholders with a nd mature…

A: The bonds have been purchased at a premium as the purchase value is greater than the maturity value.…

Q: On January 1, 2020, Teal Company purchased 9% bonds having a maturity value of $370,000, for…

A: Interest receivable = face value of investment x  interest rate = 370,000 x 9% = $33300

Q: Presented below are two independent situations: a) On December 31, 2021, Legault Corporation had…

A: Bond refers to a debt instrument issued by a company or government entity to raise capital. It…

Q: On January 1, 2020, Sage Company purchased  11% bonds, having a maturity value of $ 301,000 for $…

A: The question is based on the concept of Financial Accounting.