For each of the unrelated transactions described below, present the entries required to record each transaction. 2. Blossom Company issued $19,300,000 par value 10% bonds at 98. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $4. 3. Suppose Sepracor, Inc. called its convertible debt in 2020. Assume the following related to the transaction. The 11%, $9,700,000 par value bonds were converted into 970,000 shares of $1 par value common stock on July 1, 2020. On July 1, there was $56,000 of unamortized discount applicable to the bonds, and the company paid an additional $79,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method. No. Account Titles and Explanation Debit Credit 2. enter an account title for the second transaction enter a debit amount enter a credit amount enter an account title for the second transaction enter a debit amount enter a credit amount enter an account title for the second transaction enter a debit amount enter a credit amount enter an account title for the second transaction enter a debit amount enter a credit amount 3. enter an account title for the third transaction enter a debit amount enter a credit amount enter an account title for the third transaction enter a debit amount enter a credit amount enter an account title for the third transaction enter a debit amount enter a credit amount enter an account title for the third transaction enter a debit amount enter a credit amount enter an account title for the third transaction enter a debit amount enter a credit amount enter an account title for the third transaction enter a debit amount enter a credit amount
For each of the unrelated transactions described below, present the entries required to record each transaction.
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2. |
Blossom Company issued $19,300,000 par value 10% bonds at 98. One detachable stock purchase warrant was issued with each $100 par |
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3. |
Suppose Sepracor, Inc. called its convertible debt in 2020. Assume the following related to the transaction. The 11%, $9,700,000 par value bonds were converted into 970,000 shares of $1 par value common stock on July 1, 2020. On July 1, there was $56,000 of unamortized discount applicable to the bonds, and the company paid an additional $79,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method. |
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No. |
Account Titles and Explanation |
Debit |
Credit |
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2. |
enter an account title for the second transaction |
enter a debit amount |
enter a credit amount |
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enter an account title for the second transaction |
enter a debit amount |
enter a credit amount |
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enter an account title for the second transaction |
enter a debit amount |
enter a credit amount |
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enter an account title for the second transaction |
enter a debit amount |
enter a credit amount |
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3. |
enter an account title for the third transaction |
enter a debit amount |
enter a credit amount |
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enter an account title for the third transaction |
enter a debit amount |
enter a credit amount |
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|
enter an account title for the third transaction |
enter a debit amount |
enter a credit amount |
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|
enter an account title for the third transaction |
enter a debit amount |
enter a credit amount |
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enter an account title for the third transaction |
enter a debit amount |
enter a credit amount |
|
|
enter an account title for the third transaction |
enter a debit amount |
enter a credit amount |
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