On December 31, 2021, Glimmer Company had outstanding P3,000,000 8% convertible bonds that mature on December 31,
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: Marinara, Inc. issued a 3-year term 2,000 convertible bonds on January 1, 2021 at 110 with a face…
A: Bonds payable is a form of liability being incurred in business. It can be long term or short term,…
Q: On January 1, 2020, MNOCompany issued its 9%, P2 million bonds, which mature on January 1, 2030. The…
A:
Q: On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $60 million, dated…
A: GIVEN On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $60 million,…
Q: On January 1, 2025, Sage Company sold 12% bonds having a maturity value of $400,000.00 for…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: On January 1,2020, ABC Company issued P 10,000,000 convertible bonds with a stated rate of 12% at…
A: Step 1 is for understanding initial Entries and Understanding the flow if you want Direct Answer…
Q: Required: Determine the price of the bonds at January 1, 2021. (Enter your answer in whole dollars.)…
A: Issuance of bonds is one of the sources of financing, bonds are long-term debt for the company…
Q: Req 1 Req 2 to 4 Prepare the journal entries to record their issuance by The Bradford Company on…
A: The journal entry can be defined as the very first step where a transaction is entered into books of…
Q: On January 1, 2021, Instaform, Inc., issued 10% bonds with a face amount of $50 million, dated…
A: Bonds Payable: A bond payable is the long-term liability shown in the balance sheet that needs to be…
Q: The Bradford Company issued 10% bonds, dated January 1, with a face amount of $82 million on January…
A: Bond is a tool for finance for the company. Generally companies borrow money from banks, but in this…
Q: Auerbach Inc. Issued 10% bonds on October 1, 2021. The bonds have a maturity date of September 30,…
A: Bonds are a form of debt or liability for the business, on which regular interest payments also…
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: Mango Co. issued bonds payable on January 1, 2022. Each $1,000 bond is convertible to 10 shares of…
A: The objective of the question is to prepare an amortization table for the five-year term of the…
Q: Required: 1. to 3. Prepare the journal entries to record the purchase of the bonds by Saxton-Bose on…
A: Company will issue bond at discount i..e market rate is more than the quoted rate in the bond.
Q: On September 30, 2023, Blossom Inc. issued $3,210,000 of 10-year, 8% convertible bonds for…
A: Let's break down the journal entry to record the issuance of the bonds on September 30, 2023:Cash…
Q: On January 2, 2012, Halcon Company issued 9% bonds in the amount of P8,000,000 which mature on…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.
Q: On January 1, 2021, Nicks Company reported 10% bonds payable with carrying amount of P5,700,000. The…
A: The financial instruments can be recorded at fair or amortized value depending upon the accounting…
Q: Huskey Mining Corporation issued bonds with a par value of $109,000 on January 1, 2023. The annual…
A: Bond :— It is one of the source of capital that pays fixed periodic interest and face value amount…
Q: onversion.
A: Answer : Journal entry : Date Account title Debit Credit April1,2025 Interest payable…
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 January 1, 2021, This Company issued 12%, 3 year, P4,000,000 convertible bonds at 110. Each…
A: Working note: Computation of equity portion of financial liability:
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 July 1, 2020, an interest payment date, $200,000 of Pride Co. bonds were converted into 12,000…
A: When the bonds were converted into equity shares then the balance in Unamortized premium on bonds…
Q: The Bradford Company Issued 8% bonds, dated January 1, with a face amount of $80 million on January…
A: Computation of the present value of bonds purchased as follows:Resultant values:Preparation of…
Q: On January 1, 2012, Instaform Company issued 10% bonds with a principal amount of 550 million, dated…
A: 1.Compute of bond price and record the journal entry as follows: Result:
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: n January 1,2020, ABC Company issued P 10,000,000 convertible bonds with a stated rate of 12% at…
A: Bonds can be converted to the number of shares upon the expiration of bond. Or bonds may be retired…
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: 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: The Bradford Company issued 12% bonds, dated January 1, with a face amount of $99 million on January…
A: Bonds are the financial instruments that are used to raise money from the market or investors. The…
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 January 1, 2021, BLITZEN Company issued 10% bonds dated January 1, 2021 with a face amount of…
A: Issue Price of the bonds = Present value of principal + Present value of interest payments = face…
Q: On April 1, 2025, the entity retired 2,000 of its P1,000 bonds at a redemption price of P2,120,000,…
A: Gain or Loss which occurs due to the fact of retirement of bonds at a different value which is not…
Q: On January 1, 2025, Teal Company sold 11% bonds having a maturity value of $400,000.00 for…
A: The objective of the question is to understand how to account for the sale of bonds at a premium and…
Q: Tahoe Tent Ltd. issued bonds with a par value of $803,000 on January 1, 2023. The annual contract…
A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…
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: Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record the bond…
A: The price of the bonds is the value of the bond, which has been derived after considering all the…
Q: Pinnacle Corp. issued 4% bonds on October 1, 2022. The bonds have a maturity date of September 30,…
A: Bonds:A fixed-income generating instrument that represents the loan given by the investor to the…
Q: On January 1, 2021, BLITZEN Company issued 10% bonds dated January 1, 2021 with a face amount of…
A: Given information Face value of bond = P 8,000,000 Life of bond = 6 years Number of periods = 6 x…
Q: On January 1, 2023, DMW Corporation issued a series of 100 convertible bonds, maturing in 5 years.…
A: Note: Since you have posted a question with multiple sub parts, we will provide the solution only to…
Q: The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million on January…
A: Given information Future value= 80,000,000 Number of years= 10 × 2= 20 Rate of interest= 12% ÷ 2=…
Q: On February 1, 2009, Alpha Company issued 5,000 of its P1,000 face value bonds at 110 plus accrued…
A: Formula: Net amount received from the issuance of the bonds = Issue value of the bonds + Accrued…
Q: The Bradford Company issued 10% bonds, dated January 1, with a face amount of $94 million on January…
A: 1. Given, Face amount = $94000000 n = 10 x 2 = 20 i = 10%/2 = 5% Market yield = 12%/2 = 6% Cash…
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…
On December 31, 2021, Glimmer Company had outstanding P3,000,000 8% convertible bonds that mature on December 31, 2023. Interest is payable annually every December 31 and each P1,000 bond is convertible into 30 ordinary shares with a P20 par value per share. The unamortized discount was P200,000 and the equity component when the bonds were sold was P700,000. On the same date, 1,200 bonds were converted when the fair value of Glimmer’s share was P40.
What amount of share premium should Glimmer recognize as a result of the conversion?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On January 1, ABC Company issued P1,000,000 face value bonds with warrants to purchase ordinary shares of ABC Company for P20 per share. Each P1,000 bond has a warrant which can be used to purchase 5 shares of P10 par value. The bonds pay 10% interest every December 31 and will mature on December 31, 2022. The bonds with the warrants were issued for 110 while the bonds without the warrants will only sell for 107. All of the warrants were exercised on December 31, 2020. What amount of share premium on the issuance of the shares as a result of the exercise of the warrants was recognized by ABC Company on December 31, 2020?On June 1, 2023, Numbers Company issued a 3-year, P5,000,000 face value bonds with a stated rate of 10%. The effective interest rate for similar bonds is 12%. Interest on the bonds is payable annually at June 1.The present value of the bond issued by Numbers Company on June 1, 2023 is? 4,759,815.00 4,801,335.38 5,248,660.00 5,000,000.00 The carrying amount/amortized cost of the bond to be reported by Numbers Company on December 31, 2023 is? 4,801,335.38 4,830,992.80 4,910,711.94 5,000,000.00 19.The non-current portion of the bond to be reported by Numbers Corporation on December 31, 2024 is? 0 4,830,992.80 4,877,495.63 4,910,711.94 The non-current portion of the bond to be reported by Numbers Corporation on December 31, 2025 is? 0 4,910,711.94 4,962,796.64 5,000,000.00On January 1, 2020, ABC Company issued its 9%, P2 million bonds, which mature on January 1, 2030. The bonds were issued for P1,878,000 to yield 10% resulting in a bond discount of P122,000. Interest is payable annually on December 31. What is the carrying amount of the bonds at December 31, 2020?
- On June 30, 2024, LN Bean issued $25 million of its 8% bonds for $23 million. The bonds were priced to yield 10%. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, how much bond interest expense should the company report for the 6 months ended December 31, 2024? Multiple Choice $1,150.000 $1.207500 $1.293.750On September 30, 2023, Cullumber Inc. issued $3,120,000 of 10-year, 8% convertible bonds for $3,494,400. 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 $3,182,400. On March 23, 2026, half of the warrants were exercised. The common shares of Cullumber 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. (a) Prepare the journal entry to record the issuance of the bonds on September 30, 2023. (Credit account titles are automatically…Flysafe Bhd issues 2,000 convertible bonds at 1 January 2019. The bonds have a 3 years term, and are issued at par with a face value of RM1,000 per bond, giving total proceeds of RM2,000,000. Interest is payable annually in arrears at a nominal annual interest rate of 6%. Each bond is convertible at any time up to maturity into 250 ordinary shares. When the bonds were issued, the prevailing market interest rate for similar debt without the conversion option is 9%. When preparing the draft financial statements for the year ended 31 December2020, the directors are proposing to show the convertible bonds within equity in the statement of financial position, as they believe all the bond holders will choose the equity option when the loan note is due for redemption. They further intend to charge a finance cost of RM120,000 (RM2,000,000 x 6%) in the statement of profit or loss for each year up to the date of redemption. Required Critically evaluate the impact of the directors’ proposed…
- Mills Corp. (MC) prepares its statements in accordance with IFRS. On January 1, 2021, MC issued 1,000 seven-year, 5% convertible bonds with a face value of $1,000. Interest is paid annually on the bonds on December 31. Each $1,000 bond is convertible into 35 common shares, which are currently trading at $34 per share. Similar bonds without conversion features carry an interest rate of 7%. The bonds were issued at 94. Required: Calculate the amount to be allocated to the bond and the options, and record the journal entry at the date of issuance. Assume that after six years, when the carrying amount of the bonds is $981,308, the holders of the convertible bond decide to convert their bonds before the bond maturity date. Prepare the journal entry to record the conversion. How many shares were issued at the conversion?Federal Semiconductors issued 8% bonds, dated January 1, with a face amount of $740 million on January 1, 2024. The bonds sold for $671,914,968 and mature on December 31, 2043 (20 years). For bonds of similar risk and maturity the market yield was 9%. Interest is paid semiannually on June 30 and December 31. 1- Prepare the journal entries to record their issuance by Federal on January 1, 2024 2- At what amount will Federal report the bonds among its liabilities in the December 31, 2024, balance sheet?Bombay Corporation issued 8% bonds on January 1, 2021, with a face value of $700,000, the market yield for bonds of similar risk and maturity was 10%. The bonds mature December 2023 (3 years). Interest is paid semiannually on June 30 and December 31. Required: 1. Determine the price of the bonds on January 31, 2021. 2. Prepare the journal entry to record their issuance by Bombay on January 1, 2021. (See the below template) 3. Prepare an amortization schedule that shows the effective interest rate each period. 4. Prepare the journal entry to record interest on June 30, 2022. Date Cash Payment Effective Interest Increase in balance. Discount Reduction Outstanding Balan
- The Bradford Company issued 12% bonds, dated January 1, with a face amount of $97 million on January 1, 2021. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 14%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD OF $1, and PVAD of $1) Required: 1.Determine the price of the bonds at January 1, 2021. Price of bonds ____________________ 2.to 4. Prepare the journal entries to record their issuance by The Bradford Company on January 1, 2021. Record the bond issuance by the Bradford Company. Record the interest on June 30, 2021 (at the effective rate). Record the interest on December 31, 2021 (at the effective rate).On April 1, 2024, Déjà Vu Company issued 12% bonds that have a total face value of $140,000 (each bond has a face value of $1,000). The bonds sold for $164,023 and mature in 20 years. The effective interest rate for the bonds was 10% on 4/1/24. Interest is paid semiannually on September 30 and March 31. The market value of the bonds was 102 on 12/31/24 and $104 on 12/31/25. The market rate of interest on the bonds fell to 9% on 8/1/24. David Company purchased all of the bonds as an investment on 4/1/2024. A partial amortization schedule appears below. 9/30/2024 8,400 3/31/2025 8,400 9/30/2025 8,400 3/31/2026 8,400 9/30/2026 8,400 3/31/2027 8,400 9/30/2027 8,400 Cash Interest $__ Interest Income 8,201 8,191 8,181 8,170 8,158 8,146 8,134 $_ Premium Amortized 199 209 219 230 242 254 266 What is the amount of assets related to the bonds on David's balance sheet: As of 12/31/24 if the bonds are accounted for as held-to-maturity. Carrying Value 164,023 163,824 163,615 $_ As of 12/31/2024 if…On June 30, 2024, Blair Industries had outstanding $94 million of 7% convertible bonds that mature on June 30, 2025. Interest is payable each year on June 30 and December 31. The bonds are convertible into 8 million shares of $10 par common stock. On June 30, 2024, the unamortized balance in the discount on bonds payable account was $4 million. On June 30, 2024, half the bonds were converted when Blair's common stock had a market price of $38 per share. When recording the conversion, Blair should credit paid-in capital-excess of par: Multiple Choice $7 million. $9 million. $5 million. $3 million.
