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Current Attempt in Progress For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Coronado Corp. issued $19,500,000 par value 11% convertible bonds at 98. If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 95. 2. 3. Whispering Company issued $19,500,000 par value 11% bonds at 97. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $5. Suppose Sepracor, Inc. called its convertible debt in 2025. Assume the following related to the transaction. The 12%, $10,500,000 par value bonds were converted into 1,050,000 shares of $1 par value common stock on July 1, 2025. On July 1, there was $57,000 of unamortized discount applicable to the bonds, and the company paid an additional $82,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable Cash Discount on Bonds Payable Bonds Payable Paid-in Capital-Stock Warrants Debt Conversion Expense Bonds Payable Discount on Bonds Payable Common Stock Paid-in Capital in Excess of Par - Common Stoc Cash Debit 19110000 390000 Credit 19500000 82000

Current Attempt in Progress For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Coronado Corp. issued $19,500,000 par value 11% convertible bonds at 98. If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 95. 2. 3. Whispering Company issued $19,500,000 par value 11% bonds at 97. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $5. Suppose Sepracor, Inc. called its convertible debt in 2025. Assume the following related to the transaction. The 12%, $10,500,000 par value bonds were converted into 1,050,000 shares of $1 par value common stock on July 1, 2025. On July 1, there was $57,000 of unamortized discount applicable to the bonds, and the company paid an additional $82,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable Cash Discount on Bonds Payable Bonds Payable Paid-in Capital-Stock Warrants Debt Conversion Expense Bonds Payable Discount on Bonds Payable Common Stock Paid-in Capital in Excess of Par - Common Stoc Cash Debit 19110000 390000 Credit 19500000 82000

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 14C
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Current Attempt in Progress For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Coronado Corp. issued $19,500,000 par value 11% convertible bonds at 98. If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 95. 2. 3. Whispering Company issued $19,500,000 par value 11% bonds at 97. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $5. Suppose Sepracor, Inc. called its convertible debt in 2025. Assume the following related to the transaction. The 12%, $10,500,000 par value bonds were converted into 1,050,000 shares of $1 par value common stock on July 1, 2025. On July 1, there was $57,000 of unamortized discount applicable to the bonds, and the company paid an additional $82,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable Cash Discount on Bonds Payable Bonds Payable Paid-in Capital-Stock Warrants Debt Conversion Expense Bonds Payable Discount on Bonds Payable Common Stock Paid-in Capital in Excess of Par - Common Stoc Cash Debit 19110000 390000 Credit 19500000 82000
Transcribed Image Text:Current Attempt in Progress For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Coronado Corp. issued $19,500,000 par value 11% convertible bonds at 98. If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 95. 2. 3. Whispering Company issued $19,500,000 par value 11% bonds at 97. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $5. Suppose Sepracor, Inc. called its convertible debt in 2025. Assume the following related to the transaction. The 12%, $10,500,000 par value bonds were converted into 1,050,000 shares of $1 par value common stock on July 1, 2025. On July 1, there was $57,000 of unamortized discount applicable to the bonds, and the company paid an additional $82,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable Cash Discount on Bonds Payable Bonds Payable Paid-in Capital-Stock Warrants Debt Conversion Expense Bonds Payable Discount on Bonds Payable Common Stock Paid-in Capital in Excess of Par - Common Stoc Cash Debit 19110000 390000 Credit 19500000 82000
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