lue of each stock purchase
Q: On January 1, 2019, Maeve Company issued P6,000,000 of 12% bonds payable maturing in five years. The…
A: Market price of Bonds Payable P56,00,000 Market price of share warrants P8,00,000 Total market…
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 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 January 1, 2019, X Sports Corporation issued 10% bonds with a face value of $200,000. The bonds…
A: Par value of bonds =$200000Issue price of bonds =$191000Discount on issuance of bonds…
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 September 1, 2020, Splish Company sold at 104 (plus accrued interest) 5,760 of its 9%, 10-year,…
A: Record general journal for issuance of bonds as shown below:
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, 2021, Watermelon Company issued 3,000 of its 10%, 5-year P1,000 face value bonds with…
A: On 1st January 2021, Watermelon Company has issued 3000 10% 5 year bonds with detachable warrants.…
Q: Bayside Inc. prepares its financial statements in accordance with IFRS. On January 1, 2023, the…
A: Journal entry is the first step for preparing accounts of a business. It means recording daily…
Q: Blossom Corporation issued 1,600, ten year, 6% bonds for 104 on January 1, 2020. Interest is paid…
A: Answer:- Common shares are issued by the company to its investors which act as a proof of the…
Q: On August 31, 2020, Cebu Pacific Co. issued a 3,000, P1,000, 10%, 5 year bonds at 110 including…
A: Bonds are the financial instruments used by the company to raise money from the investor which…
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: urnal entry for April 1, 2021 bond conversion?
A:
Q: On January 1, 2019, Sasha Inc issued 10-year, P3,000,000 face value, 6% bonds, at par. Each P1,000…
A: Earnings per share are the amount per share which the shareholder earns after deducting the…
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 January 1, 2020, Safety Company issued 10,000 P1,000 bonds with 10% stated interest payable every…
A: 3.How much is the net increase/decrease in the Shareholders' Equity during 2021? [Indicate whether…
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: Oriole Inc. issued $3,940,000 of 9%, 10-year convertible bonds on June 1, 2020, at 98 plus accrued…
A: Workings :Bond Par Value $ 39,40,000.00Bond Issuance Price $ 38,61,200.00Total…
Q: On December 31, 2022, For Company issued P6,000,000 of 12% bonds payable maturing in five years. The…
A:
Q: On January 1, 2019, Post Malone Company issued P6,000,000 of 12% bonds payable maturing in five…
A: Share warrant refers to the document which is issued through the company under the common seal and…
Q: On December 31, 2020, Green Inc. issued of its 8%, 10-year, P1,000 face value bonds with detachable…
A: P 120,000 Explanation:
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: What is the credit to share premium in 2019 from the issuance of the shares through the exercise of…
A:
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: On January 1, 2019, $2,000,000 of five-year, 6% convertible bonds were sold by Company Z for…
A: These are the accounting transactions that are having a monetary impact on the financial statement…
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 September 1, 2025, Sands Company sold at 104 (plus accrued interest) 4,000 of its 9%, 10-year.…
A: Bonds are debt instruments that pay periodic interest and return the principal at maturity, while…
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 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 January 1, 2020, Sandhill Corporation issued a series of 500 convertible bonds, maturing in five…
A: IFRS 9 "Financial instruments" deals with accounting and measurement of a financial asset or a…
Q: On September 1, 2020, Sands Company sold at 104 (plus accrued interest) 4,000 of its 9%, 10-year,…
A: Workings: Calculation of face value of bond: = 4000 x 1000 = 4000000 Calculation of selling price…
Q: . Compute for the issue price of the bonds on January 1, 2019. 2. Compute for the bonds outstanding…
A: 1. There was no need of interest calculation. So, it's ignored. 2. Bonds are retired before…
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 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: 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…
Q: On July 1, 2019, Salem Corporation issued $3.2 million of 10% bonds payable in 10 years. The bonds…
A: Bonds: It is an instrument or tool of indebtedness of the bond issuer to the bondholders. Regular…
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: (a2) * Your answer is incorrect. Compute the total cost of borrowing for these bonds. Total cost of…
A: Bonds :— It is one of the type of securities that pays fixed periodic interest and face value at the…
Q: On July 1, 2020, Berry Company issued 5,000 P1,000 bonds with share warrants at its fair value of…
A:
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, 2020, Berry Company issued 5,000 P1,000 bonds with share warrants at its fair value of 115. The bonds carried an 11% interest payable every June 30 for five years. Each bond carried share warrants to purchase ten ordinary shares with a par value of P50 for P65. The effective rate of interest of the bonds ex-warrants is 8%. Sixty percent of the share warrants were exercised during 2021. 19.How much is the interest expense during 2021? 20.How much is the Share Premium arising from the exercise of share warrants?Marigold Corporation issued 2,100, ten year, 7% bonds for 104 on January 1, 2020. Interest is paid annually. Each $1,000 bond carried a detachable warrant allowing the holder to purchase 280 common shares in Marigold at $7 per share, the price at which Marigold shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 10%. On June 30, 2020, 105 of the bond holders exercised the options to buy the shares.Prepare the journal entries to record these events.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, 2019, Ventionary issued bonds with an estimated value of 10 years, $ 3,000,000 (face value), and interest of 6%. Each $ 1,000 of bond will be converted into 15 shares of common stock. Net income for 2020 is $ 240,000, at 40% tax. Interest expense on the liability component in 2020 is $ 210,000. The company has 100,000 shares in 2019. There are no bonds converted in 2019. Calculate the 2019 diluted EPS value.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 March 1, 2021, E Corp. issued $1,000,000 of 10% nonconvertible bonds at 104, due on February 28, 2031. Each $1,000 bond was issued with 50 detachable stock warrants, each of which entitled the holder to purchase, for $60, one share of Evan's $30 par common stock. On March 1, 2021, the market price of each warrant was $4. By what amount should the bond issue proceeds increase shareholders' equity?
- On September 30, 2023, Sunland Inc. issued $3,280,000 of 10-year, 8% convertible bonds for $3,772,000. The bonds pay interest on March 31 and September 30 and mature on September 30, 2033. Each $1,000 bond can be converted into 80 no par value common shares. In addition, each bond included 20 detachable warrants. Each warrant can be used to purchase one common share at an exercise price of $15. Immediately after the bond issuance, the warrants traded at $3 each. Without the warrants and the conversion rights, the bonds would have been expected to sell for $3,444,000. On March 23, 2026, half of the warrants were exercised. The common shares of Sunland were trading at $20 each on this day. Immediately after the payment of interest on the bonds, on September 30, 2028, all bonds outstanding were converted into common shares. Assume the entity follows IFRS. (e) Your answer is partially correct. Prepare the journal entry to account for the exercise of the warrants on March 23, 2026. (Credit…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.On April 1, 2023, Sheridan Corp. sold 11,000 of its $900 face value, 15-year, 10% bonds at 98. Interest payment dates are April 1 and October 1. The company follows ASPE and uses the straight-line method of bond discount amortization. On March 1, 2024, Sheridan extinguished 2,750 of the bonds by issuing 80,000 shares. At this time, the accrued interest was paid in cash to the bondholders whose bonds were being extinguished. In a separate transaction on March 1, 2024, 120, 000 of the company's shares sold for $32 per share .a.Prepare Sheridan's journal entry to record the issuance of the bonds on April 1, 2023 DR.cash 9702000 Cr.bonds payable 9702000 b.Prepare Sheridan's journal entry to record the payment of the semi-annual interest on October 1, 2023. Dr. interest expense5016000 Cr.cash 495000 Cr.bonds payable 6600 c.Prepare Sheridan's journal entry to record the accrual of the interest expense on December 31, 2023. Dr. interest expense 250800 Cr,interest payable 247500 Cr.bonds…
