Trear Company has $80,000, 10%, 12 year convertible bonds outstanding. These bonds were sold at face value and pay semiannual interest on June 30 and December 31 of each year. The bonds are convertible into 40 shares of $5 par value common stock for each $1,000 par value bond. On December 31 after the bond interest has been paid, $20,000 par value bonds are converted. The market value of Trear's common stock was $38 per share. Instructions: prepare the necessary journal entry to record the conversion.

Q: A company issued 12% bonds, dated January 1, with a face amount of $620 million on January 1, Year…

A: To determine the cash flow amounts related to the bonds for the year ended December 31, Year 1, we…

Q: Marathon Corporation issued a series of 10-year bonds on January 1, 2020. Interest is paid annually.…

A: Marathon Corporation's On 01.01.2020, Issued 10 year bonds with interest annually paid. Each $1000…

Q: Webber Corp. issued $5,000,000 of 5% bonds on May 1 at par value. The bonds were dated January 1.…

A: The objective of the question is to calculate the accrued interest that the buyer needs to pay at…

Q: Walker Corporation issued 10%, 5-year bonds with a par value of $10,000,000 on January 1, 2005.…

A: Bonds are a form of liability for the business, for which regular interest payments needs to be made…

Q: Cullumber Corporation issued 5,500, five year, 3% bonds at 103 on January 1, 2020. Interest is paid…

A: The objective of the question is to prepare the journal entries for the issuance of bonds and the…

Q: Twixt Corp. issued $5,010,000 of convertible bonds on 1 January for $4,800,000 cash. The bond had…

A: The liability portion represents the present value of future cash flows associated with the bond's…

Q: Mango Co. issued bonds payable on January 1, 2022. Each $1,000 bond is convertible to 10 shares of…

A: The objective of the question is to prepare an amortization table for the five-year term of the…

Q: Hoffman Corporation issued $80 million of 7%, 10-year bonds at 104. Each of the 80,000 bonds was…

A: Equity - Stock warrants = No. of bonds x No.of detachable stock warrant x Market value of each…

Q: Young company issued 5,000 convertible bonds at the beginning of the current year.  The bonds have a…

A: The bonds were not converted and instead, the entity paid off the convertible bondholders at…

Q: Air Supply issued $6 million of 9%, 10-year convertible bonds at 101. The bonds are convertible into…

A: Total issue price of the bonds = Face value x issue price…

Q: Stonewall Corporation issued $12,000 of 5%, 10-year convertible bonds. Each $1,000 bond is…

A: Bonds: Bonds are fixed income earning instruments where the investor lends money to the company in…

Q: Pronghorn Corporation issued 5,400, five year, 3% bonds at 104 on January 1, 2020. Interest spaid…

A: Journal entry : Method of recording financial transactions in the book of original entry by debiting…

Q: Adonis Corporation issued 10-year, 9% bonds with a par value of $260,000. Interest is paid…

A: Amount of Interest to be paid semi annually = $260,000 x 9% x 6 months 12 months = $11,700

Q: Morgan Company issues 10%, 20-year bonds with a par value of $760,000 that pay interest…

A: Answer:   Option 3.

Q: On January 1, Elias Corporation issued 7% bonds with a face value of $81,000. The bonds are sold for…

A: Interest expenses refer to the costs incurred by a borrower for using borrowed funds or obtaining…

Q: Hoffman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was…

A:

Q: A corporation issues 14%, 15-year bonds with a par value of $640,000 and semiannual interest…

A: When company needs funds for its business, it borrows money by issuing bonds. Company is called as a…

Q: Headland, Inc. had outstanding $6,340,000 of 11% bonds (interest payable July 31 and January 31) due…

A: Journal entry is the first stage of the accounting process.Journal entries are used to record…

Q: Hoffman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was…

A:

Q: Nordbock Inc. reports the following outstanding bond issue on its December 31, 20Y1,balance sheet:…

A: Bond investment: Bond investments are debt securities which pay a fixed interest revenue to the…

Q: Wildhorse, Inc. had outstanding $5,820,000 of 10% bonds (interest payable July 31 and January 31)…

A: The issue price of the bonds is as under:Issue Proceeds = Par value of the bonds * Issue quote…

Q: Prepare the journal entry to record the issuance of the bonds. (Round present value factor…

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

Q: Kier Company issued $740,000 in bonds on January 1, Year 1. The bonds were issued at face value and…

A: Interest expense is the amount which is paid on the bonds or debentures as a return. It is an…

Q: On January 1 of this year, Cunningham Corporation issued bonds with a face value of $200,000 and a…

A: DISCLAIMER: MARKET RATE IS NOT PROVIDED FOR  CALCULATING AMORTIZATION THOUGH I PROVIDED YOU WITH ITS…

Q: Stellar Corporation issued 4,500, five year, 4% bonds at 104 on January 1, 2023. Interest is paid…

A: Financial analysts and decision-makers can evaluate the effect of bond-related activities on the…

Q: Splish Corporation issued 4,000, five year, 4% bonds at 106 on January 1, 2023. Interest is paid…

A: Government or corporations issue the bonds to raise money. The bonds are issued to fund long-term…