For each of the unrelated transactions described below, present the entries required to record each transaction. 1. 2. 3. Sunland Corp. issued $19,900,000 par value 9% convertible bonds at 99. If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 95. Coronado Company issued $19,900,000 par value 9% 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. Suppose Sepracor, Inc. called its convertible debt in 2025. Assume the following related to the transaction. The 10%, $10,700,000 par value bonds were converted into 1,070,000 shares of $1 par value common stock on July 1, 2025. On July 1, there was $51,000 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. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation 1. Cash Discount on Bonds Payable Debit Credit 19701000 199000
For each of the unrelated transactions described below, present the entries required to record each transaction. 1. 2. 3. Sunland Corp. issued $19,900,000 par value 9% convertible bonds at 99. If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 95. Coronado Company issued $19,900,000 par value 9% 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. Suppose Sepracor, Inc. called its convertible debt in 2025. Assume the following related to the transaction. The 10%, $10,700,000 par value bonds were converted into 1,070,000 shares of $1 par value common stock on July 1, 2025. On July 1, there was $51,000 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. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation 1. Cash Discount on Bonds Payable Debit Credit 19701000 199000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:For each of the unrelated transactions described below, present the entries required to record each transaction.
1.
2.
3.
Sunland Corp. issued $19,900,000 par value 9% convertible bonds at 99. If the bonds had not been convertible, the company's
investment banker estimates they would have been sold at 95.
Coronado Company issued $19,900,000 par value 9% 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.
Suppose Sepracor, Inc. called its convertible debt in 2025. Assume the following related to the transaction. The 10%,
$10,700,000 par value bonds were converted into 1,070,000 shares of $1 par value common stock on July 1, 2025. On July 1,
there was $51,000 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.
(List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If
no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
No. Account Titles and Explanation
1.
Cash
Discount on Bonds Payable
Debit
Credit
19701000
199000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 3 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education