On January 1, 2019, Swifty issued 10-year, $200,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Swifty $2 par value common stock. The company has had 10,000 shares of common stock (and no preferred stock) outstanding throughout its life. None of the bonds have been converted as of the end of 2020. (Ignore all tax effects.) Prepare the journal entry Swifty would have made on January 1, 2019, to record the issuance of the bonds. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 31, 2019 eTextbook and Media List of Accounts Swifty’s net income in 2020 was $26,000 and was $22,000 in 2019. Compute basic and diluted earnings per share for Swifty for 2020 and 2019. (Round answers to 2 decimal places, e.g. 52.75.) 2020 2019 Basic earning per share $ $ Diluted earning per share $ $ eTextbook and Media List of Accounts Assume that 75% of the holders of Swifty’s convertible bonds convert their bonds to stock on June 30, 2021, when Swifty’s stock is trading at $32 per share. Swifty pays $50 per bond to induce bondholders to convert. Prepare the journal entry to record the conversion. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jun. 30, 2021
On January 1, 2019, Swifty issued 10-year, $200,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Swifty $2 par value common stock. The company has had 10,000 shares of common stock (and no preferred stock) outstanding throughout its life. None of the bonds have been converted as of the end of 2020. (Ignore all tax effects.) Prepare the journal entry Swifty would have made on January 1, 2019, to record the issuance of the bonds. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 31, 2019 eTextbook and Media List of Accounts Swifty’s net income in 2020 was $26,000 and was $22,000 in 2019. Compute basic and diluted earnings per share for Swifty for 2020 and 2019. (Round answers to 2 decimal places, e.g. 52.75.) 2020 2019 Basic earning per share $ $ Diluted earning per share $ $ eTextbook and Media List of Accounts Assume that 75% of the holders of Swifty’s convertible bonds convert their bonds to stock on June 30, 2021, when Swifty’s stock is trading at $32 per share. Swifty pays $50 per bond to induce bondholders to convert. Prepare the journal entry to record the conversion. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jun. 30, 2021
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, 2019, Swifty issued 10-year, $200,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Swifty $2 par value common stock. The company has had 10,000 shares of common stock (and no preferred stock ) outstanding throughout its life. None of the bonds have been converted as of the end of 2020. (Ignore all tax effects.)
Prepare the journal entry Swifty would have made on January 1, 2019, to record the issuance of the bonds. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Date
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Account Titles and Explanation
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Debit
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Credit
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| Jan. 31, 2019 |
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eTextbook and Media
List of Accounts
Swifty’s net income in 2020 was $26,000 and was $22,000 in 2019. Compute basic and diluted earnings per share for Swifty for 2020 and 2019. (Round answers to 2 decimal places, e.g. 52.75.)
| 2020 | 2019 | |||
| Basic earning per share | $ | $ | ||
| Diluted earning per share | $ | $ |
eTextbook and Media
List of Accounts
Assume that 75% of the holders of Swifty’s convertible bonds convert their bonds to stock on June 30, 2021, when Swifty’s stock is trading at $32 per share. Swifty pays $50 per bond to induce bondholders to convert. Prepare the journal entry to record the conversion. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Account Titles and Explanation
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Debit
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Credit
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| Jun. 30, 2021 |
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