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Computalog Inc. showed the following on its December 31, 2023, balance sheet Bonds payable, convertible Less: Unamortized discount Required: $4,130,000 14,868 $4,115,132 1. Assuming the bonds are convertible into 413,000 common shares, journalize the conversion on January 1, 2024, when the market value per common share was $10.25

Computalog Inc. showed the following on its December 31, 2023, balance sheet Bonds payable, convertible Less: Unamortized discount Required: $4,130,000 14,868 $4,115,132 1. Assuming the bonds are convertible into 413,000 common shares, journalize the conversion on January 1, 2024, when the market value per common share was $10.25

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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Computalog Inc. showed the following on its December 31, 2023, balance sheet: Bonds payable, convertible $ 4,040,000 Less: Unamortized discount 14,544 $ 4,025,456 Required: 1. Assuming the bonds are convertible into 404,000 common shares, journalize the conversion on January 1, 2024, when the market value per common share was $10.25. 2. How will the conversion of bonds into common shares affect the elements of the balance sheet (assets, liabilities, equity)? 

Computalog Inc. showed the following on its December 31, 2023, balance sheet: Bonds payable, convertible Less: Unamortized discount $4,130,000 14,868 $4,115,132 Required: 1. Assuming the bonds are convertible into 413,000 common shares, journalize the conversion on January 1, 2024, when the market value per common share was $10.25. View transaction list Journal entry worksheet < Record the conversion of bonds into shares. Note: Enter debits before credits Date January 01, 2024 General Journal Debit Credit
Transcribed Image Text:Computalog Inc. showed the following on its December 31, 2023, balance sheet: Bonds payable, convertible Less: Unamortized discount $4,130,000 14,868 $4,115,132 Required: 1. Assuming the bonds are convertible into 413,000 common shares, journalize the conversion on January 1, 2024, when the market value per common share was $10.25. View transaction list Journal entry worksheet < Record the conversion of bonds into shares. Note: Enter debits before credits Date January 01, 2024 General Journal Debit Credit
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