Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bonds are converted on December 31, 2020, when the unamortized discount is $30,000 and the market price of the stock is $21 per share. Record the conversion using the book value approach.

Q: On December 1, 2020, the ABC corporation issued 500 bonds with a par value of $ 1,000 at 9%, at 103.…

A: Bonds: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and…

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: On July 1, 2021, an interest payment date, $148000 of Bramble Corp. bonds were converted into 2930…

A: Explanation: Value = Value of Bonds - Conversion Value - Unamortized Discount Value = $148000 -…

Q: Prepare Nash's December 31, 2025, adjusting entry.

A: Introduction of bonds premium amortization:The amortization of an premium on bonds refers to the…

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: Blossom Corporation has outstanding 2,100 $1,000 bonds, each convertible into 50 shares of $10 par…

A: Answer:- Journal entry:- A journal entry records the company's financial data into the sequential…

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: Renegade, Inc. called its convertible debt in 2020. The 10% $1,000,000 par value bonds were…

A: The book value method is a technique of recording the conversion of convertible debt into stocks of…

Q: Calculate conversion factor and Record the journal entry upon conversion.

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

Q: James Company has outstanding 3,000, $1,000 bonds. Each bond is convertible into 50 shares of $12…

A: A journal entry is used to record a business inside the organization's monetary records. The main…

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: lue of each stock purchase

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

Q: Sunland Inc. issued $3 million of 10-year, 9% convertible bonds on June 1, 2023, at 98 plus accrued…

A: Bonds are long-term debt securities issued by corporations to raise funds for capital. These are…

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

A:

Q: Novak Inc. issued $3,840,000 of 11%, 10-year convertible bonds on June 1, 2025, at 99 plus accrued…

A: The convertible bonds are the bonds that can be converted into common shares. The bonds are issued…

Q: 3.) Blue Denim Company invests $10,000,000 in 6% fixed rate corporate bonds on January 1, 2020. All…

A: Debt securities not classified as Trading or HTM are classified as AFS. It is initially recorded at…

Q: On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Nash Corp.…

A: The journal entries would be as follows:

Q: Flint Corporation has outstanding 1,900 $1,000 bonds, each convertible into 70 shares of $10 par…

A: Bonds are a form of loan or debt being taken by the business. Bonds can be convertible or non…

Q: Maple Corp. issued $100,000 of 8%, 10-year convertible bonds. Each $1,000 bond is convertible into 2…

A: 1. Issuance of Convertible Bonds on January 1, 2020:Given:Face value of each bond: $1,000Total face…

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: Un January 1, 2020, Coronado Company issued 10-year, $1,870,000 face value, 6% bonds, at par. Each…

A: Diluted earnings per share is the value per share after considering the impact of all the potential…

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: Assume all the bondholders voluntarily decided to convert their bonds to common shares on July 1,…

A: Convertible bonds are corporate bonds that holders can exchange for a predetermined number of the…

Q: The December 31, 2020, balance sheet of Windsor Corp. is as follows. 9% callable, convertible…

A: Journal is the book of original entry in which all the transactions of the business are recorded…

Q: Hawk would record the following journal entry at the time of conversion:

A: Journal entries refers to the official book of a company which is used to record the day to day…

Q: Sheffield Inc. issued $15,200,000 of 12%, 40-year convertible bonds on November 1, 2025, at 97 plus…

A: To record transactions and maintain track of business activities, the business entities enter the…

Q: Windsor Inc. issued $3,840,000 of 11%, 10-year convertible bonds on June 1, 2020, at 99 plus accrued…

A: The following information given in the question: 1.  Issued $3,840,000 of 11%, 10-year convertible…

Q: Sandhill Ltd. sold 10-year, 5% convertible bonds with face value $1,590,000. The bonds pay interest…

A: Early retirement of bonds refers to the redemption of bonds by a company before their scheduled…

Q: On July 1, 2020, Tuttle Company had bonds payable outstanding with a face value of $100,000 and a…

A: The book value method is a method for recording the conversion of a bond into stock. To put it in…

Q: On April 1, 2020 Everjoy Company purchased $80,000 of Miller Corporation's 6% bonds at a purchase…

A: The carrying value of bonds payable is calculated after making adjustment for amortized discount or…

Q: On May 1, 2025, Sunland should credit Paid-in Capital from Stock Warrants for O $60672. O $63600. O…

A: Bonds are fixed-income securities that reflect investor loans to borrowers (typically corporate or…

Q: Hanshaben

A: The objective of the question is to prepare the journal entry to record the early retirement of the…

Q: Splish Corporation has outstanding 2,200 $1,000 bonds, each convertible into 50 shares of $10 par…

A: Bonds are a form of debt taken by the company. Convertible bonds are those bonds which can be…

Q: Using 1. a financial calculator, or 2. Excel function PV, calculate the issue price of the bonds and…

A: The bonds are issued either by government entities or corporations to raise money. A bond is a debt…

Q: Teal Corporation has outstanding 1,900 $1,000 bonds, each convertible into 70 shares of $10 par…

A:

Q: On July 1, 2021, an interest payment date, $150,000 of converted into 3,000 shares of Mack Co.…

A: Introduction:- The following basic information as follows under- On July 1, 2021, an interest…

Q: (a) Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.)…

A: Diluted Earnings per share is a financial metric that represents a company's earning per share,…

Q: Peach Company has a $1,000 bond that is convertible into 10 shares of common stock (par value $10).…

A: When a bond is converted into stock, it means that the bondholder exchanges their bond investment…

Q: On January 1, 2020, Bridgeport Company issued 10-year, $2,060,000 face value, 6% bonds, at par. Each…

A: Diluted Earnings Per Share (EPS) is a metric that measures the amount of residual net profits…

Q: Splish Inc. issued $5,250,000 of

A: Journal entries refer to the concept of noting all the transactions of a company in the…

Q: Nolan Corporation has outstanding convertible bonds with a face value of $15,000 and a current book…

A: The book value method of recording bond conversion into common stock…

Q: Give me correct answer with explanation.j

A: The objective of the question is to prepare the journal entries to record the conversion,…

Q: On April 1, 2020, Concord Company sold 25,200 of its 10%, 15-year. $1,000 face value bonds at 97.…

A: Answer:-  Journal entry meaning:- Journal entry is basically the record of all the business…