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Oriole Corporation sold 220 convertible, 10-year bonds at par for $220,000. Each bond pays 3% annual interest and each bond can be converted to ten common shares at the bondholder's request. When the bonds were issued, the common shares were trading for $13 per share. The market rate of interest for similar bonds without conversion rights was 5%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Prepare the journal entry to record the issuance of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places e.g. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles Cash Contributed Surplus - Conversion Rights Bonds Payable Debit Credit

Oriole Corporation sold 220 convertible, 10-year bonds at par for $220,000. Each bond pays 3% annual interest and each bond can be converted to ten common shares at the bondholder's request. When the bonds were issued, the common shares were trading for $13 per share. The market rate of interest for similar bonds without conversion rights was 5%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Prepare the journal entry to record the issuance of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places e.g. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles Cash Contributed Surplus - Conversion Rights Bonds Payable Debit Credit

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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Oriole Corporation sold 220 convertible, 10-year bonds at par for $220,000. Each bond pays 3% annual interest and each bond can be converted to ten common shares at the bondholder's request. When the bonds were issued, the common shares were trading for $13 per share. The market rate of interest for similar bonds without conversion rights was 5%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Prepare the journal entry to record the issuance of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places e.g. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles Cash Contributed Surplus - Conversion Rights Bonds Payable Debit Credit
Transcribed Image Text:Oriole Corporation sold 220 convertible, 10-year bonds at par for $220,000. Each bond pays 3% annual interest and each bond can be converted to ten common shares at the bondholder's request. When the bonds were issued, the common shares were trading for $13 per share. The market rate of interest for similar bonds without conversion rights was 5%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Prepare the journal entry to record the issuance of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places e.g. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles Cash Contributed Surplus - Conversion Rights Bonds Payable Debit Credit
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