lue of each stock purchase
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: rane Corporation issued 4,400, five year, 4% bonds at 104 on January 1, 2020. Interest is paid…
A: The accounting for the convertible bond requires recording its Liability portion and equity portion…
Q: On January 1, 2022, Bramble and Lois Company purchased 12% bonds having a maturity value of $234,000…
A: The bonds are issued or purchased either at discount or at a premium. The bond amortization table is…
Q: On January 2, 2025, Abrams Falls Inc. issued $30 million 9% bonds due in 2045 at 102. With each…
A: An official accounting record known as a journal entry is used to document financial transactions in…
Q: Sarasota Inc. issued $4,170,000 of 10%, 10-year convertible bonds on June 1, 2020, at 97 plus…
A: Solution: When a bond is sold at a discount, the amount of the bond discount must be amortized to…
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: Waterway Inc. issued $15,400,000 of 12%, 40-year convertible bonds on November 1, 2020, at 98 plus…
A: a). Date Account title & Explanation Debit($) Credit($) December 31,2020 interest payable…
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: Sunland Inc. issued $4,320,000 of 9%, 10-year convertible bonds on June 1, 2020, at 99 plus accrued…
A: Working Notes: Computation of discount on bonds payable: Particulars Amount (S) Semiannual…
Q: Required: 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June…
A: The financial instrument which provides fixed interest as a return over the period of investment is…
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: The Gonzalez Group issued $980,000 of 9% bonds on June 30, 2024, for $1,076,985. The bonds were…
A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…
Q: On May 1, 2021, Sunland Company issued $1430000 of 7% bonds at 102, which are due on April 30, 2031.…
A: A discount bond being a bond that is traded on the secondary market for less than its par value or…
Q: On April 1, 2020, Seminole Company sold 15,000 of its 11%, 15-year, $1,000 face value bonds at 97.…
A: Since we only answer up to 3 sub-parts, we’ll answer the first three. Please resubmit the question…
Q: urnal entry for April 1, 2021 bond conversion?
A:
Q: Nabil Company issued $1,500,000 of bonds on January 1, 2020. Instructions Prepare the journal…
A: The word redemption seems to have various purposes in the financial and business world, depending on…
Q: On April 1, 2020, Waterway Company sold 17,100 of its 12%, 15-year, $1,000 face value bonds at…
A: Working Notes: 1. Calculate the discount on bonds payable as shown below:Discount on bonds payable =…
Q: The Gorman Group issued $860,000 of 9% bonds on June 30, 2021, for $945,110. The bonds were dated on…
A: We have the following information of the Gorman Group: 9% $860,000 bonds issued for $945,110…
Q: The Gorman Group issued $810,000 of 11% bonds on June 30, 2021, for $879,498. The bonds were dated…
A: The journal entries are prepared to keep the record of day to day transactions of the business. The…
Q: The Bridgeport Company issued $340,000 of 8% bonds on January 1, 2025. The bonds are due January 1,…
A: Bonds are issued either by government entities or by corporations. The premium on bonds arises when…
Q: On January 1, 2020, Oriole Company purchased 12% bonds, having a maturity value of $ 310,000 for $…
A: Bonds- Bonds are those monetary securities that are issued by banks, governments, companies so as to…
Q: On August 1, 2020, Peyton Technology issued $900,000 of 7% bonds at 103. Bonds are due on July 31,…
A: Solution: Bond issuance price: 900,000 x 1.03 = 927,000Fair market value of bonds without warrants:…
Q: Crane Inc. issued $3,840,000 of 10%, 10-year convertible bonds on June 1, 2020, at 98 plus accrued…
A: The following information given below : 1. Issued $3,840,000 of 10%, 10-year convertible bonds on…
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: Prepare in general journal format the entry to record the issuance of the bonds. (List all debit…
A: Bonds are debt instruments that pay periodic interest and return the principal at maturity, while…
Q: On May 1, 2021, Coronado Industries issued $2950000 of 7% bonds at 104, which are due on April 30,…
A: Bonds are the highly secured securities which are redeemable after a certain span of time.
Q: On August 1, 2024, Perez Communications issued $44 million of 12% nonconvertible bonds at 105. The…
A: Bonds -A bond is a type of debt instrument that the government or business can use to raise money.…
Q: On December 31, 2019, Wintergreen, Inc, issued $150,000 of 7 percent, 10-year bonds at a price of…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: On January 1, 2022, Bramble and Lois Company purchased 12% bonds having a maturity value of $234,000…
A: The bonds are issued or purchased either at discount or at a premium. The bond amortization table is…
Q: By what amount should Gorczany's shareholders' equity increase when the bonds are issued
A: A key indicator of a company's financial health is shareholders' equity, which is the net value…
Q: Windsor Inc. issued $3,840,000 of 11%, 10-year convertible bonds on June 1, 2020, at 99 plus accrued…
A: The following information given in the question: 1. Issued $3,840,000 of 11%, 10-year convertible…
Q: Xonic Corporation issued $7.5 million of 20-year, 8 percent bonds on April 1, 2021, at 102. Interest…
A: Bonds Payable: Bonds payable is the source of finance for the company, when a company needs funds…
Q: On May 1, 2021, Duck Corporation issued $2,000,000 of 8% nonconvertible bonds at 104, which are due…
A: Isssue Price of Bonds ($2000000 * 104%) $20,80,000 Fair market value of bonds ($2000000 *…
Q: On August 1, 2021, Limbaugh Communications issued $30 million of 11% nonconvertible bonds at 103.…
A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…
Q: On May 1, 2021, Swifty Corporation issued $1410000 of 8% bonds at 104, which are due on April 30,…
A: Proceeds from the issue of the bonds at 104% = ($1410000 × 104%) = $1466400…
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 May 1, 2024, Green Corporation issued $1,200,000 of 8% bonds, dated January 1, 2024, for…
A: A bond is a source of finance. Usually,Usually companies and governments issue bonds to the public.…
Q: On May 1, 2025, Sunland should credit Paid-in Capital from Stock Warrants for O $60672. O $63600. O…
A: Bonds are fixed-income securities that reflect investor loans to borrowers (typically corporate or…
Q: On May 1, 2020, Judice Company issued 400 $1,000 bonds at 104. Each bond was issued with two…
A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…
Q: On January 1, 2021, Laura Company purchased $930,000 of 10% bonds at face value. Interest is payable…
A: Journal entry is a process of recording the business transactions in the books of accounts for the…
Q: On September 1, 2020, Wildhorse Company sold 9,960 of its 9%, 15-year, $1,000 face value,…
A: The question is based on the concept of Financial Accounting.
Q: On April 1, 2024, Déjà Vu Company issued 12% bonds that have a total face value of $140,000 (each…
A: Investment in debt securities can be classified under three different categories based on the intent…
Q: On September 1, 2020, Crane Company sold at 104 (plus accrued interest) 3,000 of its 9%, 10-year,…
A: A bond refers to a fixed income instrument that speaks to a credit made by a speculator to a…
Q: Pronghorn Corporation issued 5,400, five year, 3% bonds at 104 on January 1, 2020. Interest is paid…
A: Journal entry : The journal entry is related to recording the transaction of the entity in the books…
Q: On July 1, 2019, Salem Corporation issued $3.3 million of 9% bonds payable in 10 years. The bonds…
A: Face amount of bonds = 3,300,000 Cash received = 3,300,000 Value of warrent = 132,000 Discount on…
On December 1, 2020, Sunshine Carpet Cleaners issued at 103, five hundred (500) of its 8%, $1,000 bonds. Attached to each bond was one detachable stock warrant entitling the holder to purchase 10 shares of Sunshine Carpet Cleaning's common stock. On December 1, 2020, the market
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- On July 1, 2019, Salem Corporation issued $3.2 million of 10% bonds payable in 10 years. The bonds pay interest semiannually. The bonds include detachable warrants giving the bondholder the right to purchase for $32, one share of $1 par value common stock at any time during the next 10 years. Salem sold the bonds for $3.2 million. The value of the warrants at the time of issuance was $128,000. Required: Prepare in general journal format the entry to record the issuance of the bonds.On January 1, 2021, Solo Inc. issued 1,300 of its 8%, $1,000 bonds at 97.7. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2031. Solo paid $51,000 in bond issue costs. Solo uses straight-line amortization. What is the carrying value of the bonds reported in the December 31, 2021, balance sheet?On May 1, 2014, Payne Co. issued $900,000 of 7% bonds at 102, which are due on April 30, 2024. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Payne’s common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2014, the fair value of Payne’s common stock was $35 per share and of the warrants was $2. On May 1, 2014, Payne should credit Paid-in Capital from Stock Warrants for $36,560. $36,720. $37,080. $65,000.
- On January 1, 2016, Cooper Corporation issued $800,000 of 12.5% bonds due January 1, 2023, at 102. The bonds pay interest semiannually on June 30 and December 31. Each $1,000 bond carried 10 warrants which allowed the acquired to exchange 1 share of $10 par common stock for $50. Sometime after the bonds were issued the bonds were quoted at 98 ex-rights and each individual warrant was quoted at $5. Subsequently, on April 30, 2017, 2,000 rights were exercised. Required: 1. Prepare the journal entry to record the bond issue. 2. Prepare the journal entries on April 30, 2017, to record the exchange of the warrants for common shares.The Gorman Group issued $930,000 of 11% bonds on June 30, 2021, for $1,009,794. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually on December 31 and June 30. Required: 1.to3. Prepare the journal entries to record their issuance by The Gorman Group on Jun 30, 2021, interest on December 31, 2021, and interest on June 30, 2022 (at the effective rate). Record the issuance of the bond on June 30, 2021. Record the interest on December 31, 2021 (at the effective rate). Record the interest on June 30, 2022 (at the effective rate).On April 1, 2020, Concord Company sold 25,200 of its 10%, 15-year. $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Concord took advantage of favorable prices of its stock to extinguish 7,500 of the bonds by issuing 247.500 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash. The company's stock was selling for $32 per share on March 1, 2021. Prepare the journal entries needed on the books of Concord Company to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) (b) (c) (d) No. (a) April 1, 2020: issuance of the bonds. October 1, 2020:…
- On January 1, 2025, Crane Company purchased 6% bonds, having a maturity value of $530,000 for $457,971. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2025, and mature January 1, 2035, with interest receivable June 30 and December 31 of each year. Crane Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale. The fair value of the bonds at December 31 of each year-end is as follows. 2025 2026 2027 (a) (b) (c) No. (a) $459,297 454,297 2029 (b) 449,297 (Round answers to O decimal places, e.g. 2,525. Credit account titles are automatically indented when the 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. List all debit entries before credit entries.) Date 2028 Prepare the journal entry at the date of the bond purchase. Prepare the journal entries to record the interest received and recognition…On January 1, 2021, Essence Communications issued $700,000 of its 10-year, 10% bonds for $619,711. The bonds were priced to yield 12%. Interest is payable semiannually on June 30 and December 31. Essence Communications records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the market interest rate for bonds of similar risk and maturity was 11%. The bonds are not traded on an active exchange. The decrease in the market interest rate was due to a 1% decrease In general (risk-free) interest rates. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Using the information provided, estimate the fair value of the bonds at December 31, 2021. 2. to 4. Prepare the journal entries to record interest on June 30, 2021 (the first interest payment), on December 31, 2021 (the second Interest payment) and to adjust the bonds to their fair value…On January 1, 2020, Sandhill Company purchased 12% bonds, having a maturity value of $325,000 for $349,639.81. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Sandhill Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2020 $347,400 2023 $334,900 2021 $333,800 2024 $325,000 2022 $332,800 (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entries to record the interest revenue and recognition of fair value for 2020. (c) Prepare the journal entry to record the recognition of fair value for 2021. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is…
- On September 1, 2025, Splish Company sold at 104 (plus accrued interest) 5,760 of its 9%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $14 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the Splish Company bonds. Interest is payable on December 1 and June 1. Prepare in general journal format the entry to record the issuance of the bonds. (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.) Date September 1, 2025 Account Titles and Explanation Cash Bonds Payable Premium on Bonds Payable Paid-in Capital-Stock Warrants Interest Payable Debit 6120000 Credit 5760000 207360 23040…On August 1, 2024, Perez Communications issued $36 million of 12% nonconvertible bonds at 105. The bonds are due on July 31, 2044. Each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase, for $50, one share of Perez Communications’ no par common stock. Interstate Containers purchased 20% of the bond issue. On August 1, 2024, the market value of the common stock was $48 per share and the market value of each warrant was $8. In February 2035, when Perez common stock had a market price of $62 per share and the unamortized discount balance was $2 million, Interstate Containers exercised the warrants it held. Questions: Prepare the journal entries on August 1, 2024, to record (a) the issuance of the bonds by Perez and (b) the investment by Interstate. Prepare the journal entries for both Perez and Interstate in February 2035, to record the exercise of the warrants.Sunland Corporation issued 6,000, five year, 3% bonds at 103 on January 1, 2023. Interest is paid annually. Each $1,000 bond carried one detachable warrant allowing the holder to purchase 100 common shares in Sunland at $9 per share, the price at which Sunland shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 6%. On June 30, 2023, 1,200 of the bond holders exercised the options to buy the shares. Prepare the journal entries to record these events. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places eg. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date January 1, 2023 June 30, 2023 Account Titles and…