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December Y4, Böst SOSt erest is payable Dece nd premium/discount ston reports under IFF June 1, Y5, 58% of the

December Y4, Böst SOSt erest is payable Dece nd premium/discount ston reports under IFF June 1, Y5, 58% of the

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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On December 1, Y4, Boston Corp. issued $4,300,000 (par value), 12%, 5-year convertible bonds for $4,850,000. Interest is payable December 1 and June 1. If the bonds had not been convertible, they would have sold for $4,590,000. Bond premium/discount is amortized each interest period on a straight-line basis. Boston reports under IFRS. Boston's fiscal year end is September 30. On June 1, Y5, 58% of these bonds were converted into 35,000 no par common shares. At that time shares were trading at $100 per share. Instructions Prepare the entry to record the issue of the bonds on Dece Prepare the entry to record the convel a. b.
Transcribed Image Text:On December 1, Y4, Boston Corp. issued $4,300,000 (par value), 12%, 5-year convertible bonds for $4,850,000. Interest is payable December 1 and June 1. If the bonds had not been convertible, they would have sold for $4,590,000. Bond premium/discount is amortized each interest period on a straight-line basis. Boston reports under IFRS. Boston's fiscal year end is September 30. On June 1, Y5, 58% of these bonds were converted into 35,000 no par common shares. At that time shares were trading at $100 per share. Instructions Prepare the entry to record the issue of the bonds on Dece Prepare the entry to record the convel a. b.
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