Current Attempt in Progress Pina Corporation issued 4,400, five year, 4% bonds at 104 on January 1, 2023. Interest is paid annually. Each $1,000 bond carried one detachable warrant allowing the holder to purchase 100 common shares in Pina at $10 per share, the price at which Pina shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 5%. On June 30, 2023, 880 of the bond holders exercised the options to buy the shares. Prepare the journal entries to record these events. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. 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.) Date January 1, 2023 June 30, 2023 Save for Later Account Titles and Explanation Debit 10000 Attempts: 0 of 1 used Credit Submit Answer

Current Attempt in Progress Pina Corporation issued 4,400, five year, 4% bonds at 104 on January 1, 2023. Interest is paid annually. Each $1,000 bond carried one detachable warrant allowing the holder to purchase 100 common shares in Pina at $10 per share, the price at which Pina shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 5%. On June 30, 2023, 880 of the bond holders exercised the options to buy the shares. Prepare the journal entries to record these events. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. 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.) Date January 1, 2023 June 30, 2023 Save for Later Account Titles and Explanation Debit 10000 Attempts: 0 of 1 used Credit Submit Answer

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 January 1, 2016, Cooper Corporation issued $800,000 of 12.5% bonds due January 1, 2023, at 102. The bonds pay interest semiannually on June 30 and December 31. Each $1,000 bond carried 10 warrants which allowed the acquired to exchange 1 share of $10 par common stock for $50. Sometime after the bonds were issued the bonds were quoted at 98 ex-rights and each individual warrant was quoted at $5. Subsequently, on April 30, 2017, 2,000 rights were exercised. Required: 1. Prepare the journal entry to record the bond issue. 2. Prepare the journal entries on April 30, 2017, to record the exchange of the warrants for common shares.
Mae Jong Corporation issues 1,000 convertible bonds at the beginning of 2021. The bonds have a four-year term with a stated rate of interest of 6 percent, and are issued at par with a face value of P1,000 per bond (total proceeds received from issuance of the bonds are P1,000,000). Interest is payable annually at December 31. Each bond is convertible into 250 ordinary shares with a par value of P1. The market rate of interest on similar non-convertible debt is 9 percent. Compute the liability component of Mae Jong’s convertible debt. PV of 1 for 4 periods PV of Ordinary Annuity for 4 periods 6% 0.79209 3.46611 9% 0.70843 3.23972 The issuance of convertible bonds increased the entity’s equity by:
Current Attempt in Progress Sunland Company has issued three different bonds during 2022. Interest is payable annually on each of these bonds. 1. On January 1, 2022, 1.200, 7%, 5-year, $1.000 bonds dated January 1, 2022, were issued at face value. 2. On July 1. $723,000, 8%, 5-year bonds dated July 1, 2022. were issued at 103. 3. On September 1, $388.000, 6%, 5-year bonds dated September 1, 2022, were issued at 97. Prepare the journal entry to record each bond transaction at the date of issuance. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit Sept. 1 eTextbook and Media
Marigold Corporation issued 2,100, ten year, 7% bonds for 104 on January 1, 2020. Interest is paid annually. Each $1,000 bond carried a detachable warrant allowing the holder to purchase 280 common shares in Marigold at $7 per share, the price at which Marigold shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 10%. On June 30, 2020, 105 of the bond holders exercised the options to buy the shares.Prepare the journal entries to record these events.
ABC Co. issued 1.000 convertible bonds at the beginning of 2019. The bonds have a four-year term with a stated rate of interest of 6 percent, and are issued at par with a face value of Rp1.000 per bond (the total proceeds received from issuance of the bonds are Rp1.000.000). Interest is payable annually at December 31. Each bond is convertible into 250 ordinary shares with a par value of Rp1. The market rate of interest on similar non-convertible debt is 9 percent. On December 31, 2020, ABC wishes to reduce its annual interest cost. The company agrees to pay the holder of its convertible bonds an additional Rp40.000 if they will convert. Assuming conversion occurs, ABC’s journal entry to record the conversion will include all of the following, except:
Current Attempt in Progress On January 2, 2018, Crane Corporation, a small company that follows ASPE, issued $1.8 million of 10% bonds at 98 due on December 31, 2027. Legal and other costs of $180,000 were incurred in connection with the issue. Crane has a policy of capitalizing and amortizing the legal and other costs incurred by including them with the bond recorded at the date of issuance. Interest on the bonds is payable each December 31. The $180,000 of issuance costs are being deferred and amortized on a straight-line basis over the 10- year term of the bonds. The discount on the bonds is also being amortized on a straight-line basis over the 10 years. (The straight-line method is not materially different in its effect compared with the effective interest method.) The bonds are callable at 102 (that is, at 102% of their face amount), and on January 2, 2023, the company called a face amount of $1,000,000 of the bonds and retired them. (a) Ignoring income taxes, calculate the…
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Mango Co. issued bonds payable on January 1, 2022. Each $1,000 bond is convertible to 10 shares of common stock after January 1, 2024. The bonds have a 5-year term, a stated rate of 8%, and pay interest annually on January 1. The bonds were issued at a premium of $25,274 which provides an effective interest rate of 6%. (Hint: Prepare an amortization table for the five-year term of the bonds. Note that 2023 is the second year in the term of the bonds.) Prepare the adjusting entry at Dec. 31 , 2023.
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Sunland Corporation issued 6,000, five year, 3% bonds at 103 on January 1, 2023. Interest is paid annually. Each $1,000 bond carried one detachable warrant allowing the holder to purchase 100 common shares in Sunland at $9 per share, the price at which Sunland shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 6%. On June 30, 2023, 1,200 of the bond holders exercised the options to buy the shares. Prepare the journal entries to record these events. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places eg. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. 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.) Date January 1, 2023 June 30, 2023 Account Titles and…