$10,000 a $200,000 bond issue convertible into 4,000 shares of common stock (par value $20). At the time of the conversion, the unamortized premium is $4,000, the market value of the bonds is $220,000, and the stock is quoted on the market at $60 per share. If the bonds are converted into common, what is the amount of paid-in capital in excess of par to be recorded on the conversion of the bonds?

Q: V6.  On January 1, Stunt Corp. had outstanding convertible bonds with a face value of $1,000,000 and…

A: Lets understand the basics. Bond is a liability of the company but on other hand equity is a owners…

Q: vertible into 10 ordinary shares of P50 par value. On July 1, the interest was paid to bondholders,…

A: Solution: Calculation of increase in share capital and increase in share premium:   Particulars…

Q: Sweet Company has bonds payable outstanding in the amount of $650,000, and the Premium on Bonds…

A: The organization can raise funds for the operation by issuing common stock, preferred stock for…

Q: Trear Company has $80,000, 10%, 12 year convertible bonds outstanding. These bonds were sold at face…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Nolan Corporation has outstanding convertible bonds with a face value of $15,000 and a current book…

A: Under book value method of recording conversion of bonds into common stock takes into account book…

Q: How would I Debit and Credit for the transactions shown?     Oct. 1 Purchased $90,000 of Dream…

A: Journal

Q: Hoffman Corporation issued $80 million of 7%, 10-year bonds at 104. Each of the 80,000 bonds was…

A: Equity - Stock warrants = No. of bonds x No.of detachable stock warrant x Market value of each…

Q: 1. Richmond Co. sold convertible bonds at a premium. Interest is paid on May 31 andNovember 30. On…

A: As you posted Multiple questions as per our guidelines we are answering only First question. Kindly…

Q: Hoffman Corporation issued $70 million of 5%, 15-year bonds at 102. Each of the 70,000 bonds was…

A: The question is based on the concept of Financial Accounting. Whenever bonds are issued at price…

Q: Coronado Industries issued at a premium of $10900 a $190000 bond issue convertible into 3100 shares…

A: Convertible bonds are the bonds issue with an option given to investor of bond to convert it into…

Q: Air Supply issued $6 million of 9%, 10-year convertible bonds at 101. The bonds are convertible into…

A: Total issue price of the bonds = Face value x issue price…

Q: wy Company issued $500,000, 8% bonds on January 1, Year 1. The bonds pay interest on June 30 and…

A: Bond is an financial instrument which pays a regular interest to the bond holders. Convertible bonds…

Q: A company paid $33,800 to acquire 11% bonds with a $36,000 maturity value. The company intends to…

A: The cash proceeds from the bond that the company receives at maturity is the face value or maturity…

Q: Prepare the journal entry for the conversion assuming the book value method was used.

A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…

Q: Grouper Company has bonds payable outstanding in the amount of $350,000, and the Premium on Bonds…

A: A bond is borrowing security issued by a company to raise funds from the market by making an…

Q: Grouper Company has bonds payable outstanding in the amount of $350,000, and the Premium on Bonds…

A: Grouper Company already issued 350 bonds ($350,000/$1,000). Now, each bond is converted to 20…

Q: Mae Jong Corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of…

A: Bonds: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and…

Q: Hoffman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was…

A:

Q: Richmond Co. sold convertible bonds at a premium. Interest is paid on May 31 and November 30. On May…

A: Convertible Bonds:   Convertible bonds are long-term debts issued by a corporation carrying a fixed…

Q: At the beginning of the current year, Cove Company, a closely-held entity, issued 6% bonds with a…

A: Solution Concept In case of the compound financial instrument Compound financial instrument is the…

Q: Wild Cat Corporation has a $1,000,000 debt issue that is convertible into 10,000 prdinary shares.…

A: a) Basic EPS = Net income/Weighted average number of outstanding shares   b) Diluted EPS = {Net…

Q: Smash Company has 4,000 machine hours available annually to manufacture badminton racquets. The…

A: The variable cost is required to be deducted from the sales revenue in order to compute the…

Q: James Company had bonds which are convertible into shares of common stock. There were two bonds,…

A: Earnings per share is very important for the shareholders because the shareholders are true owners…

Q: 2. On January 1, 20X1, Toy inc. Issued $500,000 of convertible bonds. The bonds mature on December…

A: Journal entries, the initial stage of the accounting cycle, are used to record every business…

Q: Sandhill Corporation issued convertible bonds at a premium of $9900. The $208000 bond issue was…

A: Convertible bonds are a type of bond where the holder can convert the bonds into common shares. The…

Q: Crane Limited had $2.39 million of bonds payable outstanding and the unamortized premium for these…

A: The objective of the question is to determine the journal entries that would be made when Crane…

Q: Hoffman Corporation issued $60 million of 8%, 20-year bonds at 105. Each of the 60,000 bonds was…

A: The issue price of the bonds with detachable warranties is allocated based on the market values for…

Q: At the beginning of the current year, ABC Corporation issued 6,000, 5-year bonds, face value 1,000…

A: Given information, Face value of bonds=6,000*1,000=6,000,000   Cost of the bonds…

Q: Carla Vista Corporation issued convertible bonds at a premium of $9800. The $193000 bond issue was…

A: The book value of bonds is calculated as face value of bonds add unamortized premium. The shares are…