James Company has outstanding 3,000, $1,000 bonds. Each bond is convertible into 50 shares of $12 par value common stock. The bonds are converted on December 31, 2018. The unamortized discount is $40,000 and the market price of the stock is $35 per share. Record the conversion of the bonds for James Company.

Q: On December 1, 2020, the ABC corporation issued 500 bonds with a par value of $ 1,000 at 9%, at 103.…

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

Q: Crane Company has $3930000 of 7% convertible bonds outstanding. Each $1,000 bond is convertible into…

A: Explanation: The Amount on Bonds payable and the premium on bonds payable Both are accounted as…

Q: On May 1, 2020, Forest Company issued 3,000 $1,000 bonds at 102. Each bond was issued with one…

A: Market Value of Warrants = No. of bonds x   fair value = 3,000 x $30 = $90,000 Market Value of Bonds…

Q: On July 1, 2021, an interest payment date, $148000 of Bramble Corp. bonds were converted into 2930…

A: Explanation: Value = Value of Bonds - Conversion Value - Unamortized Discount Value = $148000 -…

Q: Carla Vista Corporation had two issues of securities outstanding: $20 par value common stock and an…

A: The conversion of bonds under U.S. Generally Accepted Accounting Principles (GAAP) typically refers…

Q: On July 1, 2020, Tealight Company issued 2,000 $ 1,000 bonds at 103. Each bond was issued with one…

A: The process of recording financial activity for the first time in the books of accounts is known as…

Q: Ivanhoe Company issues $265,000, 20-year, 10% bonds at 103. What is the journal entry to record the…

A: Par value of bonds = $265,000   Issue price of bonds = 265,000 x 103% Issue price of bonds =…

Q: Arco, INC. issued $500,000 of 4%, 10 year convertible bonds at 102 on July 1, 2012. On July 1, 2017,…

A: In this problem, we are asked to pass a journal entry to record the conversion of the bonds issued…

Q: Vaughn Inc. issued $3,790,000 of 10%, 10-year convertible bonds on June 1, 2025, at 99 plus accrued…

A: (a) Entry to record the interest expense at October 1, 2025:Accrual of interest expense:The interest…

Q: On July 1, 2023, Sandhill Ltd., which follows ASPE, issued 1,000 convertible, five-year, $1,000…

A: Journal entries are made to record the transactions as the first process in the books of accounts…

Q: Blossom Corporation has outstanding 2,100 $1,000 bonds, each convertible into 50 shares of $10 par…

A: Answer:- Journal entry:- A journal entry records the company's financial data into the sequential…

Q: On January 1, 2021, Madison Products issued $75 million of 8%, 10-year convertible bonds at a net…

A: A bond conversion is the process of changes bond into shares. The number of shares that a bond can…

Q: On January 1, 2018, Davie Services issued $20,000 of 8% bonds that mature in five years. They were…

A: Premium on issue of bonds = Isue value - face value of bonds = $20,750 - $20,000 = $750

Q: On April 1, 2021, Austere Corporation issued $320,000 of 14% bonds at 108. Each $1000 bond was sold…

A: To calculate the amount of proceeds from the bond issue that should be recorded as an increase in…

Q: rporation convertible bonds outstanding. Each $1,000 bond is convertible into 30 par value common…

A: Conversion of Bonds:A fixed income generating security but the one that can be converted into common…

Q: On December 31, 2016, ABC Corp. issues $50,000,000 of 5%, 25-year, convertible bonds for total…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Sunland Inc. issued $3 million of 10-year, 9% convertible bonds on June 1, 2023, at 98 plus accrued…

A: Bonds are long-term debt securities issued by corporations to raise funds for capital. These are…

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: Kingbird Inc. issued $4,230,000 of 9%, 10-year convertible bonds on June 1, 2025, at 98 plus accrued…

A: convertible bonds offer investors a consistent income stream by paying interest on a regular basis.…

Q: Novak Inc. issued $3,840,000 of 11%, 10-year convertible bonds on June 1, 2025, at 99 plus accrued…

A: The convertible bonds are the bonds that can be converted into common shares. The bonds are issued…

Q: On January 1, 2025, Swifty Company purchased 12% bonds having a maturity value of $312,000 for…

A: Investment means an asset purchased in expectation of earning a return on such investment in future…

Q: On March 1, 2025, Cullumber Corporation issued $1920000 of 8% nonconvertible bonds at 104. The bonds…

A: Paid-in capital is the money a company has received from investors in return for issuing stock. This…

Q: On May 1, 2011, Stone Corporation issued $4 million of 10-year, 6% convertible bonds at 101. The…

A: Convertible bonds are described as those types of bonds which can be converted into predetermined…

Q: Computalog Inc. showed the following on its December 31, 2023, balance sheet: Bonds payable,…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: Assume all the bondholders voluntarily decided to convert their bonds to common shares on July 1,…

A: Convertible bonds are corporate bonds that holders can exchange for a predetermined number of the…

Q: Gerard Corporation convertible bonds. A $100,000 convertible bond was issued at par on January 1,…

A: ANSWER:- a Earning Per Share=$1.33 b.Diluted Earning Per Share Using                    Converted…

Q: On January 1, 2020, Teal Company purchased 9% bonds having a maturity value of $370,000, for…

A: Interest receivable = face value of investment x  interest rate = 370,000 x 9% = $33300

Q: Sheffield Inc. issued $15,200,000 of 12%, 40-year convertible bonds on November 1, 2025, at 97 plus…

A: To record transactions and maintain track of business activities, the business entities enter the…

Q: Sandhill Co. has $3890000 of 7% convertible bonds outstanding. Each $1000 bond is convertible common…

A: The Amount on Bonds payable and the premium on bonds payable Both are accounted as liabilities and…

Q: Sandhill Ltd. sold 10-year, 5% convertible bonds with face value $1,590,000. The bonds pay interest…

A: Early retirement of bonds refers to the redemption of bonds by a company before their scheduled…

Q: On July 1, 2025, Crane Corporation issued $2,500,000 of 9% bonds payable in 20 years. The bonds…

A: Stock Warrants -Stock warrants are options granted to investors by a company that trades on an…

Q: On July 1, 2020, Tuttle Company had bonds payable outstanding with a face value of $100,000 and a…

A: The book value method is a method for recording the conversion of a bond into stock. To put it in…

Q: s convertible into 35 common shares, which are currently trading at $34 per share.  Similar bonds…

A: Bonds - Bonds are fixed-income securities that reflect loans from investors to borrowers (typically…

Q: On April 1, 2021, ABC Corporation issued $340,000 of 15% bonds at 107. Each $1,000 bond was sold…

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

Q: Computalog Inc. showed the following on its December 31, 2023, balance sheet Bonds payable,…

A: The conversion of Bond to common stock, reduces liability and increases Equity. The  redemption of…

Q: Teal Corporation has outstanding 1,900 $1,000 bonds, each convertible into 70 shares of $10 par…

A:

Q: On July 1, 2021, an interest payment date, $150,000 of converted into 3,000 shares of Mack Co.…

A: Introduction:- The following basic information as follows under- On July 1, 2021, an interest…

Q: On June 30, 2024, Blair Industries had outstanding $94 million of 7% convertible bonds that mature…

A: Step 1: Calculate the book value of the bonds convertedStep 2: Determine the number of shares…

Q: Peach Company has a $1,000 bond that is convertible into 10 shares of common stock (par value $10).…

A: When a bond is converted into stock, it means that the bondholder exchanges their bond investment…

Q: On January 1, 2016, Cooper Corporation issued $800,000 of 12.5% bonds due January 1, 2023, at 102.…

A: Bond might be issued at the discount or premium with the attached warrant to it and warrant holder…

Q: On January 1, 2026, Baker Company purchased, as an investment, 5% bonds, having a maturity value of…

A: a) January 1, 2026 Debt investment a/c Dr     $138400               To cash a/c.…

Q: ABC Co. issued 1.000 convertible bonds at the beginning of 2019. The bonds have a four-year term…

A: Share Capital-Ordinary will be credited by Rp250,000, as there is an increase in share capital worth…

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

A: The book value method of recording bond conversion into common stock…