Current Attempt in Progress Ivanhoe Corp. offers three-year, 6% convertible bonds (par $1,000). Each $1,000 bond may be converted into 155 common shares, which are currently trading at $3 per share. Similar straight bonds carry an interest rate of 9%. 1,100 bonds are issued at par. Assume that holders of the convertible debt of Ivanhoe Corp. decide to convert their convertible bonds before the bonds mature. The bond discount will be partially amortized at this point. The Contributed Surplus - Conversion rights amounted to be $83,533. Assume that the unamortized portion is $14,020 and that IFRS is a constraint. Prepare the journal entry to record the conversion. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
Current Attempt in Progress Ivanhoe Corp. offers three-year, 6% convertible bonds (par $1,000). Each $1,000 bond may be converted into 155 common shares, which are currently trading at $3 per share. Similar straight bonds carry an interest rate of 9%. 1,100 bonds are issued at par. Assume that holders of the convertible debt of Ivanhoe Corp. decide to convert their convertible bonds before the bonds mature. The bond discount will be partially amortized at this point. The Contributed Surplus - Conversion rights amounted to be $83,533. Assume that the unamortized portion is $14,020 and that IFRS is a constraint. Prepare the journal entry to record the conversion. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current Attempt in Progress
Ivanhoe Corp. offers three-year, 6% convertible bonds (par $1,000). Each $1,000 bond may be converted into 155 common shares,
which are currently trading at $3 per share. Similar straight bonds carry an interest rate of 9%. 1,100 bonds are issued at par. Assume
that holders of the convertible debt of Ivanhoe Corp. decide to convert their convertible bonds before the bonds mature. The bond
discount will be partially amortized at this point. The Contributed Surplus - Conversion rights amounted to be $83,533. Assume that
the unamortized portion is $14,020 and that IFRS is a constraint.
Prepare the journal entry to record the conversion. (Credit account titles are automatically indented when the amount is entered. Do not
indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit
entries.)
Account Titles
Debit
Credit
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