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On January 1, 2024, Coronado issued 10-year, $220,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Coronado $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 2025. (Ignore all tax effects.)

On January 1, 2024, Coronado issued 10-year, $220,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Coronado $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 2025. (Ignore all tax effects.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dinesh bhai 

On January 1, 2024, Coronado issued 10-year, $220,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Coronado $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 2025. (Ignore all tax effects.) (a) Prepare the journal entry Coronado would have made on January 1, 2024, to record the issuance of the bonds. (List debit entry before credit entry. 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.) Date Jan. 1, 2024 Account Titles and Explanation Debit Credit
Transcribed Image Text:On January 1, 2024, Coronado issued 10-year, $220,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Coronado $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 2025. (Ignore all tax effects.) (a) Prepare the journal entry Coronado would have made on January 1, 2024, to record the issuance of the bonds. (List debit entry before credit entry. 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.) Date Jan. 1, 2024 Account Titles and Explanation Debit Credit
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