For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Blossom Corp. issued $18,900,000 par value 9% convertible bonds at 98. If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 95. 2. Blue Company issued $18,900,000 par value 9% bonds at 97. 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 10%, $10,800,000 par value bonds were converted into 1,080,000 shares of $ 1 par value common stock on July 1, 2020. On July 1, there was $60,000 of unamortized discount applicable to the bonds, and the company paid an additional $69,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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For each of the unrelated transactions described below, present the entries required to record each transaction. 1.
Blossom Corp, issued $18,900,000 par value 9% convertible bonds at 98. If the bonds had not been convertible, the
company's investment banker estimates they would have been sold at 95. 2. Blue Company issued $18,900,000 par
value 9% bonds at 97. 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 10%, $10,800,000 par value bonds were converted into 1,080,000 shares of $
1 par value common stock on July 1, 2020. On July 1, there was $60,000 of unamortized discount applicable to the
bonds, and the company paid an additional $69,000 to the bondholders to induce conversion of all the bonds. The
company records the conversion using the book value method.
Transcribed Image Text:For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Blossom Corp, issued $18,900,000 par value 9% convertible bonds at 98. If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 95. 2. Blue Company issued $18,900,000 par value 9% bonds at 97. 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 10%, $10,800,000 par value bonds were converted into 1,080,000 shares of $ 1 par value common stock on July 1, 2020. On July 1, there was $60,000 of unamortized discount applicable to the bonds, and the company paid an additional $69,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method.
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