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24. On January 1, 20x1, Patience Co. issued 10%, 3-year, P2,000,000 convertible bonds at 105. Each P1,000 bond is convertible into 8 shares with par value per share of P100. Principal is due on Dec 31, 20x3, while interest is due annually every year-end. On issuance date, the bonds were selling at a yield to maturity market rate of 12% without the conversion option. All the bonds were converted into equity on December 31, 20x2.

24. On January 1, 20x1, Patience Co. issued 10%, 3-year, P2,000,000 convertible bonds at 105. Each P1,000 bond is convertible into 8 shares with par value per share of P100. Principal is due on Dec 31, 20x3, while interest is due annually every year-end. On issuance date, the bonds were selling at a yield to maturity market rate of 12% without the conversion option. All the bonds were converted into equity on December 31, 20x2.

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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24. On January 1, 20x1, Patience Co. issued 10%, 3-year, P2,000,000 convertible bonds at 105. Each P1,000 bond is convertible into 8 shares with par value per share of P100. Principal is due on Dec 31, 20x3, while interest is due annually every year-end. On issuance date, the bonds were selling at a yield to maturity market rate of 12% without the conversion option. All the bonds were converted into equity on December 31, 20x2. Patience Co. incurred stock issuance costs of P20,000. Required: Provide all journal entries in 20x1 and 20x2
Transcribed Image Text:24. On January 1, 20x1, Patience Co. issued 10%, 3-year, P2,000,000 convertible bonds at 105. Each P1,000 bond is convertible into 8 shares with par value per share of P100. Principal is due on Dec 31, 20x3, while interest is due annually every year-end. On issuance date, the bonds were selling at a yield to maturity market rate of 12% without the conversion option. All the bonds were converted into equity on December 31, 20x2. Patience Co. incurred stock issuance costs of P20,000. Required: Provide all journal entries in 20x1 and 20x2
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