Grouper Company has bonds payable outstanding in the amount of $350,000, and the Premium on Bonds Payable account has a balance of $7,400. Each $1,000 bond is convertible into 20 shares of preferred stock of par value of $50 per share. All bonds are converted into preferred stock. Assuming that the book value method was used, what entry would be made?
Q: Oriole Company has issued 2,500 shares of common stock and 500 shares of preferred stock for a lump…
A: Common stock and Preference stock are two types of stock or shares that is being issued by the…
Q: 3. Suppose Sepracor, Inc. called its convertible debt in 2025. Assume the following related to the…
A: In the above case, the bonds have been issued at a discount. The par value of the bonds is $ 100.…
Q: Nebraska Inc. issues 2,350 shares of common stock for $75,200. The stock has a stated value of $13…
A: Common stock refers to a security that speaks to ownership in an organization. Holders of common…
Q: included the conversic they would have sold e the journal entry to re- e of the bonds for Jeste
A: Answer : Account title Debit Credit Cash a/c Dr. (4,000,0001.01) $4,040,000 To premium on…
Q: The market price of a share of common stock at the time of issuance was $19.50, while the market…
A: Stockholder's equity section is the one which reports the preferred stock, common stock, retained…
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: Waterway Inc. issued $3,830,000 par value, 7% convertible bonds at 98 for cash. If the bonds had not…
A: SOLUTION- JOURNAL IS THE COMPANY'S OFFICIAL BOOK IN WHICH TRANSACTIONS ARE RECORDED IN CHRONOLOGICAL…
Q: The following information was taken from the books and records of Ludwick, Inc.: 1. 2. Net income…
A: It represents the portion of a company's profit allocated to each outstanding share of common stock.…
Q: For each of the unrelated transactions described below, present the entry(ies) required. (a)…
A: Dear student, kindly check the answer in the answer explanation box below.Explanation:Part 1:…
Q: Jester Corporation Issued $4,000,000 par value, 5% convertible bonds, at 101 for cash. If the bonds…
A: Bond issuance is one option for companies to raise finance. Through bonds, a corporation and an…
Q: REQUIREMENTS: (1) Compute BASIC EARNINGS PER SHARE for 2003. (2) Compute DILUTED EARNINGS PER SHARE…
A: Given information is: Following is a partial balance sheet for Anderson Corp. for the year ended…
Q: The market price of a share of common stock at the time of issuance was $19.50, while the market…
A: The stockholders' equity section is represented on the balance sheet of the business. It records the…
Q: For each of the unrelated transactions described below, present the entries required to record each…
A: A bond is a fixed-rate instrument issued to represent to an advance made by a financial specialist…
Q: Blue Spruce Corporation issued 2,850 shares of stock.Prepare the entry for the issuance under the…
A: No. Account Titles and explanation Debit ($) Credit ($) a Cash 56500 Common stock (2850*10)…
Q: or each of the unrelated transactions described below, present the entries required to record each…
A: A bond is a fixed-rate instrument issued to represent an advance made by a financial specialist to a…
Q: Tamarisk Corporation issued 2,100 $1,000 bonds at 103. Each bond was issued with one detachable…
A: Warrants -Companies may offer warrants as a financial instrument in return for costs or payments.…
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: sell for 98 without the warrants. The market value of each warrant is $45. Instructions: A. Record…
A:
Q: For each of the unrelated transactions described below, present the entries required to record each…
A: DateParticularsDebit Credit20XXCash A/C$18,090,000Discount on bond's payable A/C$2,010,000To Bonds…
Q: Llewelyn Company purchased 3,600 shares of its own $8 par value common stock when the market price…
A: To create a journal entry, you enter transaction details into ones company's books. Your journal…
Q: For each of the unrelated transactions described below, present the entries required to record each…
A: Warrants -The right to buy stock at a given price and on a given date is granted to the holder of a…
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: On January 1, the $3,000,000 par value bonds of Spitz Company with a carrying value of $3,000,000…
A: Additional paid in capital in excess of Par - Common stock = Carrying value of bonds - Par value of…
Q: During the past 2 years Meacham Industries issued three separate convertible bonds. For each of…
A: A bond is an instrument that represents the loan that is made by the investor to the company and…
Q: Your company sells $41,000 of one-year, 12% bonds for an issue price of $39,500. The journal entry…
A: Discount on bonds = Face value - issue price = $41,000 - $39,500 = $1,500
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: Company A has 279,000 basic shares outstanding and 26,000 outstanding options and warrants. The…
A: The total number of fully diluted shares outstanding is the total number of shares that a firm would…
Q: The following information was taken from the books and records of Ivanhoe, Inc.: 1 2 3 Net Income…
A: It represents the portion of a company's profit allocated to each outstanding share of common stock.…
Q: Riverbed Corporation is authorized to issue common and $3 convertible preferred shares. Each…
A: Introduction Some times A Corporation may issue convertible preferred shares, that can be converted…
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: Grouper Company already issued 350 bonds ($350,000/$1,000). Now, each bond is converted to 20…
Q: Partially correct answer iconYour answer is partially correct. Sweet Company issued $11,000,000 par…
A: calculate the value of bonds: value of bonds = $11,000,000 * (97 /100) Value of bonds = $11.000.000…
Q: Ayayai Corporation issued 5,000 $1,000 bonds at 98. Each bond was issued with one detachable stock…
A: Discount on bonds payable = No. of bonds x face value per bonds x (100-sales price)% = 5000 x $1000…
Q: payment of a call premium of $10,000. The bonds D,000. We call these bonds prior to maturity on…
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: a company has a 1000 bond that is convertable into 100 shares of common stock par vale 10. how will…
A: EPS is an important financial measure for both investors and analysts because it provides insight…
Q: Flint Corporation issued 1,900 shares of stock. Prepare the entry for the issuance under the…
A: Solution: Journal entry : Date General Journal Debit $ Credit $…
Q: For each of the unrelated transactions described below, present the entries required to record each…
A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…
Q: 27. A company holds $150,000 par value of bonds with a carrying value of $147,950. The company calls…
A: Bonds are high-security instruments for debt that help organizations raise money and meet their…
Q: For each of the unrelated transactions described below, present the entries required to record each…
A: Journal entries are made to record the transactions as the first process in the books of accounts…
Q: For each of the unrelated transactions described below, present the entries required to record each…
A: ANSWER 1 : Account title Debit Credit Cash [18,800,000 *0.99] 18,612,000 Discount…
Q: Lily Corporation issued 5,400 shares of stock. Prepare the entry for the issuance under the…
A: S.No. Particulars. Debit($) Credit($) A). Cash.…
Q: XXY Corporation had 250,000 shares of common stock outstanding at the beginning of the year. XXY…
A: Basic EPS (Earnings per Share) is a financial metric that measures a company's profit per share of…
Q: (a) The stock had a par value of $5.25 per share and was issued for a total of $46,500. (b) The…
A: A journal entry is a record of a company's business activity that is retained in the company's…
Q: Langdon & Co. issues bonds with a face value of $50,000 for $51,000. Each $1,000 bond carries 10…
A: We need to separate the value assigned to the bonds and the warrants. As a first step we will…
Q: Hoffman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was…
A:
Q: Nexis Corp. issues 1,900 shares of $12 par value common stock at $17 per share. When the transaction…
A: Journal entries are passed following the golden rules of accounting Debit all assets and expenses…
Q: ws the holder to acquire one share of $1 par common stock for $40 per share. Immediately after the…
A: Answer : Market value of bond without warrant =($1000*99%)*$50,000/1000 = $49,500 Market value of…
Q: A bond issue of $50,000 with a carrying value of $49,000 is converted into $10 par value common…
A: Book Value method is a method of recording the conversion of the bonds into common stocks. Under the…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Bridgeport Corp. issued $18,800,000 par value 11% convertible bonds at 99. If the bonds had not been convertible, the company’s investment banker estimates they would have been sold at 95. 2. Indigo Company issued $18,800,000 par value 11% 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 12%, $10,100,000 par value bonds were converted into 1,010,000 shares of $1 par value common stock on July 1, 2020. On July 1, there was $52,000 of unamortized discount applicable to the bonds, and the company paid an additional $75,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method.…Iowa Corporation Issued $4,000,000 par value, 5% convertible bonds, at 101 for cash. If the bonds had not included the conversion feature, they would have sold for 99. Prepare the journal entry to record the issuance of the bonds for Iowa Corporation.Nolan Corporation has outstanding convertible bonds with a face value of $15,000 and a current book value of $17,500. Each $1,000 bond is convertible into 25 shares of common stock (par value $5 per share). All the bonds are converted into common stock on June 1 when the market value of Nolan’s common stock is $50 per share. Required: Using the book value method, prepare the journal entry for Nolan to record the conversion.
- James Company had bonds which are convertible into shares of common stock. There were two bonds, both issued at par. One was for $400,000 and was purchased on January 1st with an interest rate of 6%, this bond is convertible into 200,000 shares of common stock. The second bond was for $600,000 and had an interest rate of 8% and was purchased on May 1st, this bond is convertible into 400,000 shares of common stock. Interest on both bonds is paid annually. The overall tax rate for the organization is 20%. Additionally, net income is $800,000, but does not include interest expense or taxes. The organization currently has 460,000 shares of common stock outstanding. A. Calculate Earnings Per Share B. Calculate Dilutive Earnings Per Share using the if converted method. C. Is the organization anti-dilutive? Explain your answer.Prepare the journal entry to record Zende Company's issuance of 75,000 shares of $5 par value common stock assuming the shares sell for: a. $5 cash per share. b. $6 cash per share. View transaction list Journal entry worksheet 1 > Record the issuance of 75,000 shares of $5 par value common stock assuming the shares sell for $5 cash per share. Note: Enter debits before credits. 3/ F6 F7 F8 F9 F1025) Harrell's Barrels issued $100 million of 6% convertible bonds at 101. Each $1,000 bond is convertible into 45 shares of Harrell's no par common stock. Bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 98. Harrell applies International Financial Reporting Standards. Recording the issuance of the bonds would cause an increase in Harrell's: A) shareholders' equity of $1,000,000. B) shareholders' equity of $3,000,000. C) assets of $98,000,000. D) liabilities of $101,000,000.
- For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Sage Corp. issued $20,100,000 par value 10% 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. Pronghorn Company issued $20,100,000 par value 10% 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 11%, $9,100,000 par value bonds were converted into 910,000 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 $81,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method.…Pronghorn Corporation purchased from its stockholders 5,400 shares of its own previously issued stock for $275,400. It later resold 2,160 shares for $54 per share, then 2,160 more shares for $49 per share, and finally 1,080 shares for $43 per share. Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation I (To record purchase from stockholders.) (To record sales of shares at $54 per share.) (To record sales of shares at $49 per share.) Debit CreditA $1,000 corporate bond is convertible to 40 shares of the corporation's common stock. What is the minimum price that the stock must obtain before bondholders would consider converting the bond to stock?
- Huntington Power Co. has issued following three securities as its long-term source of capital. Calculate the weights of each source of capital (kd, kp, ke). Debt: 2,500 bonds outstanding, current market price of the bond is $1,080. Preferred Stock: 3,000 shares outstanding, selling for $98. Common Stock: 60,000 shares outstanding, selling for $55 per share. a. 42.90%; 4.67%; 52.43% b. 45.63%; 1.72%; 59.67% c. 42.90%; 4.67%; 55.71% d. 59.67%; 5.08%; 35.24% e. 45.63%; 1.72%; 52.65% f. 42.90%; 2.23%; 52.14%Hoffman Corporation issued $60 million of 8%, 20-year bonds at 105. Each of the 60,000 bonds was issued with 13 detachable stock warrants, each of which entitled the bondholder to purchase, for $26, one share of $1 par common stock. At the time of sale, the market value of the common stock was $31 per share and the market value of each warrant was $5. Prepare the journal entry to record the issuance of the bonds.Blend Inc. issued 500, $1,000 bonds at 102. Each bond was issued with two detachable stock warrants. After issuance, the bonds were selling in the market at 97. a. Assume the warrants had a market value of $35 each after issuance. Under the proportional method, the journal entry to record the issuance of the bonds and warrants includes a debit to Discount on Bonds Payable of? b. Assume that after issuance, the market price of the warrants, without the bonds, cannot be determined. Under the incremental method, the journal entry to record the issuance of the bonds and warrants includes a debit to Discount on Bonds Payable of? Please avoid solutions image based thenx
