Sandhill Ltd. sold 10-year, 5% convertible bonds with face value $1,590,000. The bonds pay interest December 31 each year. Sandhill follows ASPE. Each bond was convertible into 530 Sandhill common shares. The sale resulted in a value for the convertible option of $279,000. On January 2, 2024, Sandhill offered a cash payment of $33,000 to bondholders if they would convert their bonds into common shares. All of the bondholders agreed. At the time, the market value of the bonds was $1,379,000 and the carrying value on Sandhill's books was $1,362,000. Prepare the journal entry to record the early retirement of the bonds. (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.)

Sandhill Ltd. sold 10-year, 5% convertible bonds with face value $1,590,000. The bonds pay interest December 31 each year. Sandhill follows ASPE. Each bond was convertible into 530 Sandhill common shares. The sale resulted in a value for the convertible option of $279,000. On January 2, 2024, Sandhill offered a cash payment of $33,000 to bondholders if they would convert their bonds into common shares. All of the bondholders agreed. At the time, the market value of the bonds was $1,379,000 and the carrying value on Sandhill's books was $1,362,000. Prepare the journal entry to record the early retirement of the bonds. (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.)

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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