On January 1 2024 a public company, John Cruz corporation (jcc) issued $1,000,000 of 8%, five year, convertible debentures. Intrest paid semi-annually on June 30th and December 31st. The debentures are convertible at the investors option. The conversion ratio is 20 common shares for each $1,000 bond. Market interest rates for non-convertible bonds is similar risk and term are 7%. The net proceeds received by ccc were 1,200,000. CCC uses gross method to account for bonds. Prepare journal entry to recird bond issuance on Jan 1 2024 Prepare june 30 2024 entry to record interest expense assuming that ccc amortizes bond premium and discount using the method of ifrs
On January 1 2024 a public company, John Cruz corporation (jcc) issued $1,000,000 of 8%, five year, convertible debentures. Intrest paid semi-annually on June 30th and December 31st. The debentures are convertible at the investors option. The conversion ratio is 20 common shares for each $1,000 bond. Market interest rates for non-convertible bonds is similar risk and term are 7%. The net proceeds received by ccc were 1,200,000. CCC uses gross method to account for bonds. Prepare journal entry to recird bond issuance on Jan 1 2024 Prepare june 30 2024 entry to record interest expense assuming that ccc amortizes bond premium and discount using the method of ifrs
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1 2024 a public company, John Cruz corporation (jcc) issued $1,000,000 of 8%, five year, convertible
debentures. Intrest paid semi-annually on June 30th and December 31st. The debentures are convertible at the investors
option. The conversion ratio is 20 common shares for each $1,000 bond. Market interest rates for non-convertible bonds
is similar risk and term are 7%. The net proceeds received by ccc were 1,200,000. CCC uses gross method to account for
bonds.
Prepare journal entry to recird bond issuance on Jan 1 2024
Prepare june 30 2024 entry to record interest expense assuming that ccc amortizes bond premium and discount using the
method of ifrs
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