Current Attempt in ProgressIvanhoe 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. Assumethat holders of the convertible debt of Ivanhoe Corp. decide to convert their convertible bonds before the bonds mature. The bonddiscount will be partially amortized at this point. The Contributed Surplus - Conversion rights amounted to be $83,533. Assume thatthe 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 notindent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before creditentries.)Account TitlesDebitCredit

The term "accounting for convertibles" refers to the accounting of a debt instrument that gives the…

Answered: Current Attempt in Progress Ivanhoe…

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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On November 16, 2020, Bilbond issued its 10-year, 7% P1,000,000 convertible bonds at 122. The bonds would have sold for P1,154,435 without the conversion feature. The effective interest rate of similar bonds without the conversion feature is 5%. What is the increase in equity on the date of issuance?
If a Company plans to issue $1,000,000 of 6% bonds at a time when the market rate for similar bonds is 3%, the bonds are to sell at: A: The face amount B: Premium C: Discount D: None of the above
Current Attempt in Progress On January 1, 2025, Cheyenne Company purchased 12% bonds having a maturity value of $278,000 for $299,076.51. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2025, and mature January 1, 2030, with interest received on January 1 of each year. Cheyenne Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2025 2026 2027 (a) (b) (c) No. $296,600 $287,300 2029 (a) $286,200 2028 (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 O for the amounts. Round answers to 2 decimal places, e.g. 1225.25.) $288,200 $278,000 Prepare the journal entry at the date of the bond purchase. Prepare the journal entries to…
bonds are queted at 101. Problem 6-8 (IAA) Sunshine Company issued 4-year P5,000,000 face value of 12% convertible bonds at 105 on January 1, 2013, maturing on January 1, 2018 and paying interest annually on December 31. It is reliably ascertained that the bonds would sell at P4,700,000 without the conversion feature with an effective yield of 14%. Eaclh P1,000 bond is convertible into 8 shares of P100 par value share capital, On December 31, 2013, all of the bonds are converted into share capital. At this time, the share has a market value of P150 and the Required: 1. Prepare journal entry to record the issuance of the bond on January 1, 2013. 2. Prepare journal entry to record the interest payment and amortization for 2013. The effective interest method of amortization is used. 3. Prepare journal entry to record the conversion of bonds on December 31, 2013.
answer in text form please (without image), Note: .Every entry should have narration please
please explain properly Thanku
On January 1,2020, ABC Company issued P 10,000,000 convertible bonds with a stated rate of 12% at 110. The principal of the bonds is payable on December 31, 2024. Interest on the bonds is payable annually starting December 31,2020. Each P 5,000 bond is convertible into 20 ordinary shares of P 50 par. Without the bond conversion privilege, the bonds would have sold to yield 10%.On December 31,2021 after paying periodic interests, half of the bonds issued were converted to ordinary shares. On October 1,2023, half of the remaining bonds were retired at 102 plus accrued interest. Without the bond conversion privilege, the bonds are quoted at 101.How much was credited to the share premium- ordinary account at the time of conversion of bonds on December 31,2021?
On February 1, 2021, Nalawi ltd, issued a 5% , 8-year bond with a face value of 500,000. The semi-annual interest (Coupon) Payments are made on January 31 and July 31. Nikawi LTD receives $468,597 in cash. The company uses the effective interest method. The market rate is 6% Prepare a bond amortization table for the first two semi-annual interest periods. Record the journal entries for the insurance of the bond on February 1st, 2021 and the semi annual interest payments for July 31st, 2021, and January 31st 2022 dd on questions What is the interest payment on July 31st, 2021 What is the interest expense on July 31st, 2021 What is the carrying amount of the bond July 31st, 2021 What is the interest payment on January 31st, 2022 What is the interest expense on January 31st, 2022 What is the carrying amount of the bond on January 31st, 2022.
Auerbach Incorporated issued 4% bonds on October 1, 2024. The bonds have a maturity date of September 30, 2034 and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2025. The effective interest rate established by the market was 6%. How much cash interest does Auerbach pay on March 31, 2025? Multiple Choice O $12.0 million $9.0 million $6.0 million $18.0 million
profile-image Sunny issued a convertible bond on January 1, 20X8, for $1,000,000, which is the face value of the bonds. The bonds are convertible into 20,000 common shares and pay interest annually on December 31 at a rate of 29%. Similar bonds without a conversion feature are priced to yield 6%. The bonds mature in seven year What is the interest expense recognized for 20X9 related to this bon a $48,1 b. $40,0 c. $46,0 d $60,0 00980098d?s d $60,000
2) On January 1, 2020, CBT Corp issued 20,000, 20 year, $1,000 bonds. The bonds have an annual coupon of $50, payable on December 31 of each year. Each bond can be convertible in to five common shares. The bonds sold for 120 and it is estimated that the bonds would have sold for 105 if they did not have the convertible option. Required: a. Prepare the journal entry to recognize the bond sale made by CBT on January 1, 2020. b. On January 1, 2023, 2,000 bonds were converted into common shares. Prepare the journal entry to recognize the conversion transaction.
1. On January 1, 2020, CHAR Company issued P 10,000,000 convertible bonds with a stated rate of 12% at 110. The principal of the bonds is payable on December 31, 2024. Interest on the bonds is payable annually starting December 31, 2020. Each P 5,000 bond is convertible into 20 ordinary shares of P 50 par. Without the bond conversion privilege, the bonds would have sold to yield 10%. On December 31, 2021, after paying periodic interests, half of the bonds issued were converted to ordinary shares. On October 1, 2023, half of the remaining bonds were retired at 102 plus accrued interest. Without the bond conversion privilege, the bonds are quoted at 101. How much was credited to the share premium- ordinary account at the time of conversion of bonds on December 31, 2021? (For present value factors, do not round off) 2. On January 1, 2021, MAMA Company sold the property to the PAPA Company. There was no established exchange price for the property, and PAPA gave MAMA a P2,000,000…

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