Marin Corporation issued 5,300, 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 Marin at $11 per share, the price at which Marin 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, 1,060 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, eg 1.25124 and the final answer to O decimal places e.g. 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 0 for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Date January 1, 2023 Cash Gain on Redemption of Bonds Bonds Payable Debit 3 545900 Credit ENG us
Marin Corporation issued 5,300, 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 Marin at $11 per share, the price at which Marin 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, 1,060 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, eg 1.25124 and the final answer to O decimal places e.g. 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 0 for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Date January 1, 2023 Cash Gain on Redemption of Bonds Bonds Payable Debit 3 545900 Credit ENG us
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Ee 312.
![Marin Corporation issued 5,300, 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 Marin at $11 per share, the price at which Marin
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,
1,060 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, eg. 1.25124 and the final
answer to O decimal places e.g. 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
Account Titles and Explanation
Cash
Gain on Redemption of Bonds
Bonds Payable
Debit
8
545900
Credit
ENG
US](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0630410c-a19e-44ab-b4d6-77a916c6edca%2F88cf60b7-4f05-4509-88b7-35f6eb268047%2F607ig47c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Marin Corporation issued 5,300, 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 Marin at $11 per share, the price at which Marin
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,
1,060 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, eg. 1.25124 and the final
answer to O decimal places e.g. 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
Account Titles and Explanation
Cash
Gain on Redemption of Bonds
Bonds Payable
Debit
8
545900
Credit
ENG
US
![January 1, 2023
June 30, 2023
Cash
Gain on Redemption of Bonds
Bonds Payable
Bonds Payable
Loss on Conversion of Bonds
Equity-Fixed-for-fixed Derivative
545900
106000
10600
15
530
116](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0630410c-a19e-44ab-b4d6-77a916c6edca%2F88cf60b7-4f05-4509-88b7-35f6eb268047%2Fw8er46_processed.jpeg&w=3840&q=75)
Transcribed Image Text:January 1, 2023
June 30, 2023
Cash
Gain on Redemption of Bonds
Bonds Payable
Bonds Payable
Loss on Conversion of Bonds
Equity-Fixed-for-fixed Derivative
545900
106000
10600
15
530
116
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