On September 1, 2020, Sands Company sold at 104 (plus accrued interest) 4,000 of its 9%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $15 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the Sands Company bonds. Interest is payable on December 1 and June 1. Instructions Prepare in general journal format the entry to record the issuance of the bonds.

Q: On January 1, 2019, Maeve Company issued P6,000,000 of 12% bonds payable maturing in five years. The…

A: Market price of Bonds Payable P56,00,000 Market price of share warrants  P8,00,000 Total market…

Q: Sarasota Inc. issued $4,170,000 of 10%, 10-year convertible bonds on June 1, 2020, at 97 plus…

A: Solution: When a bond is sold at a discount, the amount of the bond discount must be amortized to…

Q: Waterway Inc. issued $15,400,000 of 12%, 40-year convertible bonds on November 1, 2020, at 98 plus…

A: a). Date Account title & Explanation Debit($) Credit($) December 31,2020 interest payable…

Q: Star Co. has bonds with a face value of $200 per share, a term of 3 years, and an interest rate of…

A: JOURNAL ENTRTIES FOR THE YEAR 2021 FOR Ombre Co   May 1, 2021 Shares held for Trading of Star Co.…

Q: On January 1, 2021, Madison Products issued $75 million of 8%, 10-year convertible bonds at a net…

A: A bond conversion is the process of changes bond into shares. The number of shares that a bond can…

Q: On January 1, 2021, Watermelon Company issued 3,000 of its 10%, 5-year P1,000 face value bonds with…

A: On 1st January 2021, Watermelon Company has issued 3000 10% 5 year bonds with detachable warrants.…

Q: Blossom Corporation issued 1,600, ten year, 6% bonds for 104 on January 1, 2020. Interest is paid…

A: Answer:- Common shares are issued by the company to its investors which act as a proof of the…

Q: Fowl paid the semiannual interest and issued the requisite number of shares for the bonds being…

A: A bond is an instrument that is a type of loan given by an investor to a borrower.  It gives a fixed…

Q: On the first day of 2021, Rooney Inc had outstanding $1,000,000 of 9% bonds with a book value of…

A: Explanation: We should compare the amount we pay for the bonds and the book value of the bonds:…

Q: e amount received compared to the present value was due to the conversion feature. Each $100 bond…

A: Bond: The bond is a debt obligation under which the borrower of the debt is obliged to pay the…

Q: What is the carrying amount of the bonds as of December 31, 2022?

A: Compound financial Instrument: A Compound Financial Instrument is an instrument which exhibits the…

Q: On September 1, 2017, Pearl Company sold at 102 (plus accrued interest) 3,100 of its 6%, 10-year,…

A: Cash =  (3100*1000*102%) + (3100000*6%*3/12) = $ 3208500 Bonds payable = 3100 * 1000 = $ 3100000…

Q: The long-term liability section of Eastern Post Corporation’s balance sheet as of December 31, 2023,…

A: Eastern Post called half the bonds at the call price of 102 (102% of the face…

Q: On May 1, 2021, Sunland Company issued $1430000 of 7% bonds at 102, which are due on April 30, 2031.…

A: A discount bond being a bond that is traded on the secondary market for less than its par value or…

Q: lue of each stock purchase

A: Answer b. $489,250             Cash recd = 103% X 500 Nos X $1,000 = $515,000…

Q: urnal entry for April 1, 2021 bond conversion?

A:

Q: Appling Enterprises issued 9% bonds with a face amount of $430,000 on January 1, 2024. • The bonds…

A: Financial liability measurement involves determining the value of liabilities on a company's balance…

Q: On April 30, one year before maturity, Middleton company retired $200,000 of its 9% bonds payable at…

A: The retirement amount on bond is $202,000. The book value of bond is $196,000.

Q: On January 1, 2021, Malya Company issued 500, P1,000 face value 6%, 5-year term bonds and issued to…

A: Bonds are an instrument issued by the company on which interest is payable till maturity or…

Q: On January 1, 2025, Swifty Company purchased 12% bonds having a maturity value of $312,000 for…

A: Investment means an asset purchased in expectation of earning a return on such investment in future…

Q: On April 1, 2020, Flounder Company sold 22,500 of its 11%, 15-year, $1,000 face value bonds at 97.…

A: Bonds are debt instrument that is generally issued by corporations or government entities to raise…

Q: Crane Inc. issued $3,840,000 of 10%, 10-year convertible bonds on June 1, 2020, at 98 plus accrued…

A: The following information given below : 1. Issued $3,840,000 of 10%, 10-year convertible bonds on…

Q: On March 1, 2025, Cullumber Corporation issued $1920000 of 8% nonconvertible bonds at 104. The bonds…

A: Paid-in capital is the money a company has received from investors in return for issuing stock. This…

Q: Prepare in general journal format the entry to record the issuance of the bonds. (List all debit…

A: Bonds are debt instruments that pay periodic interest and return the principal at maturity, while…

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 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 December 31, 2022, For Company issued P6,000,000 of 12% bonds payable maturing in five years. The…

A:

Q: On January 1, 2019, Post Malone Company issued P6,000,000 of 12% bonds payable maturing in five…

A: Share warrant refers to the document which is issued through the company under the common seal and…

Q: he Sweet Corporation issued 10-year, $ 5,270,000 par,  6% callable convertible subordinated…

A: EPS and diluted EPS are the measures of profitability which is used by companies for fundamental…

Q: On May 1, 2021, Coronado Industries issued $2950000 of 7% bonds at 104, which are due on April 30,…

A: Bonds are the highly secured securities which are redeemable after a certain span of time.

Q: On August 1, 2024, Perez Communications issued $44 million of 12% nonconvertible bonds at 105. The…

A: Bonds -A bond is a type of debt instrument that the government or business can use to raise money.…

Q: What is the credit to share premium in 2019 from the issuance of the shares through the exercise of…

A:

Q: By what amount should Gorczany's shareholders' equity increase when the bonds are issued

A: A key indicator of a company's financial health is shareholders' equity, which is the net value…

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…

Q: On May 1, 2021, Duck Corporation issued $2,000,000 of 8% nonconvertible bonds at 104, which are due…

A: Isssue Price of Bonds ($2000000 * 104%) $20,80,000     Fair market value of bonds ($2000000 *…

Q: On August 1, 2021, Limbaugh Communications issued $30 million of 11% nonconvertible bonds at 103.…

A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…

Q: On May 1, 2021, Swifty Corporation issued $1410000 of 8% bonds at 104, which are due on April 30,…

A: Proceeds from the issue of the bonds at 104%        = ($1410000 × 104%)         = $1466400…

Q: The Stellar Corporation issued 10-year, $4,310,000 par, 7% callable convertible subordinated…

A: GIVEN DATA     The Stellar Corporation issued 10-year, $4,310,000 par, 7% callable convertible…

Q: On July 1, 2025, Crane Corporation issued $2,500,000 of 9% bonds payable in 20 years. The bonds…

A: Stock Warrants -Stock warrants are options granted to investors by a company that trades on an…

Q: On June 30, 2019 Golf Green Inc.  sold 12,000 of  its $1,000 face value 10-year, 6% bonds when the…

A: Step 1 Journal is the part of book keeping.

Q: (a) April 1, 2020: issuance of the bonds. (b) October 1, 2020: payment of semiannual interest. (c)…

A: Working Notes:1. Calculate the discount on bonds payable as shown below:Discount on bonds payable =…

Q: On September 1, 2020, Crane Company sold at 104 (plus accrued interest) 3,000 of its 9%, 10-year,…

A: A bond refers to a fixed income instrument that speaks to a credit made by a speculator to a…

Q: On July 1, 2019, Salem Corporation issued $3.3 million of 9% bonds payable in 10 years. The bonds…

A: Face amount of bonds = 3,300,000 Cash received = 3,300,000 Value of warrent = 132,000 Discount on…

Q: On January 1, 2022, A company issued 1,000 of its January 1, 2017, 8%, 10 year, P1,000 face value…

A: An annuity is a series of equal payments made at regular intervals. The term can refer to any…