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Prepare the journal entry to record the conversion. (Credit accoun indent manually. If no entry is required, select "No Entry" for the accou entries.)

Prepare the journal entry to record the conversion. (Credit accoun indent manually. If no entry is required, select "No Entry" for the accou entries.)

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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Current Attempt in Progress Ivanhoe Corp. offers three-year, 6% convertible bonds (par $1,000). Each $1,000 bond may be converted into 155 common shares, which are currently trading at $3 per share. Similar straight bonds carry an interest rate of 9%. 1,100 bonds are issued at par. Assume that holders of the convertible debt of Ivanhoe Corp. decide to convert their convertible bonds before the bonds mature. The bond discount will be partially amortized at this point. The Contributed Surplus - Conversion rights amounted to be $83,533. Assume that the unamortized portion is $14,020 and that IFRS is a constraint. Prepare the journal entry to record the conversion. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles Debit Credit
Transcribed Image Text:Current Attempt in Progress Ivanhoe Corp. offers three-year, 6% convertible bonds (par $1,000). Each $1,000 bond may be converted into 155 common shares, which are currently trading at $3 per share. Similar straight bonds carry an interest rate of 9%. 1,100 bonds are issued at par. Assume that holders of the convertible debt of Ivanhoe Corp. decide to convert their convertible bonds before the bonds mature. The bond discount will be partially amortized at this point. The Contributed Surplus - Conversion rights amounted to be $83,533. Assume that the unamortized portion is $14,020 and that IFRS is a constraint. Prepare the journal entry to record the conversion. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles Debit Credit
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