What is the carrying amount of the bonds as of December 31, 2022?
Q: On January 1, 2019, Maeve Company issued P6,000,000 of 12% bonds payable maturing in five years. The…
A: Market price of Bonds Payable P56,00,000 Market price of share warrants P8,00,000 Total market…
Q: On January 1, 2022, Iced Latte Corporation issued 5,000 10-year bonds of 12% P1,000 face value, each…
A: The amount allocated to the warrants-equity component refers to the value of equity which is derived…
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: On January 1, 2017, Sydney Inc. issued P 5,000,000 face value, 5-year bonds at 109. Each P1,000 bond…
A: Compound financial instruments are instruments that have both debt and equity components. Both the…
Q: On January 1, 2021, Watermelon Company issued 3,000 of its 10%, 5-year P1,000 face value bonds with…
A: On 1st January 2021, Watermelon Company has issued 3000 10% 5 year bonds with detachable warrants.…
Q: Kingbird Inc. issued $2,100,000 of convertible 10-year bonds on july 1,2020. The bonds provide for…
A: a. % of bond converted = $210,000/$2,100,000 = .10 or 10% Period of Amortization = 10 x 12 = 120…
Q: On July 1, 2022, Cullumber Company purchased the copyright to Bramble Corp. for $310000. It is…
A: Annual amortization of Copyright = (Cost of copyright - residual value) / Life of copyright =…
Q: Prepare the journal entries to record the conversion, amortization, and interest in connection with…
A: Journal entries refer to the concept of noting all the transactions of a company in the desired…
Q: Bonita Inc. issued $2,280,000 of convertible 10-year bonds on July 1, 2025. The bonds provide for…
A: Journal entries refer to the concept of noting all the transactions of a company in the desired…
Q: Prepare all the necessary journal entries assuming the share warrants are fully exercised.
A: Issue price of bonds with warrants (5,000,000 x 103) = 515,000,000 Market value of bonds without…
Q: On January 1, 2017, Fruit of the Spirit Company issued a 9% convertible bonds with a face amount of…
A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…
Q: urnal entry for April 1, 2021 bond conversion?
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Q: On January 1, 2021, Malya Company issued 500, P1,000 face value 6%, 5-year term bonds and issued to…
A: Bonds are an instrument issued by the company on which interest is payable till maturity or…
Q: On January 1, 2019, Sasha Inc issued 10-year, P3,000,000 face value, 6% bonds, at par. Each P1,000…
A: Earnings per share are the amount per share which the shareholder earns after deducting the…
Q: On January 1, 2025, Swifty Company purchased 12% bonds having a maturity value of $312,000 for…
A: Investment means an asset purchased in expectation of earning a return on such investment in future…
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: Prepare in general journal format the entry to record the issuance of the bonds. (List all debit…
A: Bonds are debt instruments that pay periodic interest and return the principal at maturity, while…
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: Larkspur Inc. issued $5,550,000 of convertible 5-year bonds on July 1, 2025. The bonds provide for…
A: Bonds are the source of fund through which the company gathers required investment for its project…
Q: On April 1, 2025, the entity retired 2,000 of its P1,000 bonds at a redemption price of P2,120,000,…
A: Gain or Loss which occurs due to the fact of retirement of bonds at a different value which is not…
Q: On December 31, 2022, For Company issued P6,000,000 of 12% bonds payable maturing in five years. The…
A:
Q: On January 1, 2019, Post Malone Company issued P6,000,000 of 12% bonds payable maturing in five…
A: Share warrant refers to the document which is issued through the company under the common seal and…
Q: What is the credit to share premium in 2019 from the issuance of the shares through the exercise of…
A:
Q: On December 31, 2022, Two Company issued 5,000 of its 12%, 10-year P1,000 face value bonds with…
A: Here discuss about the details of issuance of Bod with detachable warrant and its calculation which…
Q: V Company issued a 5-year, P5,000,000 face value bonds at 109 on December 31, 2020. Each P5,000 bond…
A: Share Premium = P5,620,000 Calculation: Particulars Amount Amount Cash (5,000,000 / 1,000…
Q: 1. Calculate the proceeds from the bond issue and show in good form Donnie's journal entry to record…
A: Solution Note As per the Q&A guideline we are required to answer the first three subparts only .…
Q: On September 1, 2025, Sands Company sold at 104 (plus accrued interest) 4,000 of its 9%, 10-year.…
A: Bonds are debt instruments that pay periodic interest and return the principal at maturity, while…
Q: On July 1, 2025, Crane Corporation issued $2,500,000 of 9% bonds payable in 20 years. The bonds…
A: Stock Warrants -Stock warrants are options granted to investors by a company that trades on an…
Q: On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable…
A: Definition: Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by…
Q: TDC Company issued a 3-year,12%, 2,000 of P 1,000 face value bonds with warrants at 98 on January 1,…
A: solution : given face value of bond =2000 *1000…
Q: On September 1, 2020, Sands Company sold at 104 (plus accrued interest) 4,000 of its 9%, 10-year,…
A: Workings: Calculation of face value of bond: = 4000 x 1000 = 4000000 Calculation of selling price…
Q: Swifty Inc. issued $1,920,000 of convertible 10-year bonds on July 1, 2025. The bonds provide for…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: On July 1, 2019, Salem Corporation issued $3.3 million of 9% bonds payable in 10 years. The bonds…
A: Face amount of bonds = 3,300,000 Cash received = 3,300,000 Value of warrent = 132,000 Discount on…
Q: On January 1, 2022, A company issued 1,000 of its January 1, 2017, 8%, 10 year, P1,000 face value…
A: An annuity is a series of equal payments made at regular intervals. The term can refer to any…
Q: On march 1 2023, Star corporation issue P500,000 of 10%, 7 year bonds with 1 taxable warrants…
A: As per IAS 32 (IFRS), a compound financial Instrument is an Instrument that has an equity component…
Q: ABC Company issued a 3-year,12%, 2,000 of P 1,000 face value bonds with warrants at 98 on January 1,…
A: Present value of the bonds = Present value of principal + Present value of interest payments = face…
Q: Show the computation please. On January 1, 2022, Dirk Corporation issued 1,000 of its January…
A: A Compound Financial Instrument is an instrument which exhibits the characteristics of both Equity…
Q: On July 1, 2020, Berry Company issued 5,000 P1,000 bonds with share warrants at its fair value of…
A:
Q: On July 1, 2020, Berry Company issued 5,000 P1,000 bonds with share warrants at its fair value of…
A: bonds issued with share warrant here at the time of issue of the bonds by the company it will also…
Q: On January 1, 2026, Baker Company purchased, as an investment, 5% bonds, having a maturity value of…
A: a) January 1, 2026 Debt investment a/c Dr $138400 To cash a/c.…
On January 1, 2022, A company issued 1,000 of its January 1, 2017, 8%, 10 year, P1,000 face
Round off PV factor to four decimal places. Round off final answer to the nearest peso.
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- Splish Inc. issued $5,250,000 of convertible 5-year bonds on July 1, 2025. The bonds provide for 6% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $108,000, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 15 shares of Splish Inc.'s $1 par value common stock for each $1,000 of bonds. On October 1, 2026, $630,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (Credit account titles are automatically indented when 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.)…Arco, Inc. issued $300,000 of 4%, 10-year convertible bonds at par on July 1, 2022. Each bond has a par value of $1000. The bonds include the option for bondholders to convert each bond into 50 $1 par value shares of common stock beginning two years after the date of issue. The market price of the stock at the time of issue is $25 per share and the beneficial conversion option is valued at $75,000. On July 2, 2024, when the market price of the stock is $35 and the balance in the Discount account is $66,000, all of the bondholders convert the bonds. What is the proper entry to record the conversion of the bonds? Group of answer choices Date Account Debit Credit July 2, 2024 Bonds Payable 300,000 Discount on Bonds Payable 75,000 Common Stock, $1 par, 15,000 shares 300,000 Add. Paid-in Capital—Bene. Conv. Option 75,000 Date Account Debit Credit July 2, 2024 Bonds Payable 300,000 Add. Paid-in Capital—Bene. Conv. Option 75,000 Discount…Jaenda Inc. issued $5,000,000 of convertible 5-year bonds on July 1, 2020. The bonds provide for 6% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $120,000, which is being amortized monthly on a straight-line basis.The bonds are convertible after one year into 15 shares of Volker Inc.'s $1 par value common stock for each $1,000 of bonds.On October 1, 2021, $600,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Instructions Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (Round to the nearest dollar.) a. October 1, 2021. (Assume the book value method is used.) b. October 31, 2021. c. December 31, 2021, including closing entries for end-of-year.
- On February 1, 2021, Cromley Motor Products issued 9% bonds, dated February 1, with a face amount of $80 million. The bonds mature on January 31, 2025 (4 years). The market yield for bonds of similar risk and maturity was 10%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $80,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31.Required:1. Determine the price of the bonds issued on February 1, 2021.2. Prepare amortization schedules that indicate (a) Cromley’s effective interest expense and (b) Barnwell’s effective interest revenue for each interest period during the term to maturity.3. Prepare the journal entries to record (a) the issuance of the bonds by Cromley and (b) Barnwell’s investment on February 1, 2021.4. Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2023.On January 1, 2020, Booker Corp. issued $9 million of ten year bonds at 100.5 (Booker amortizes any premium/discount on a straight line basis). Each $1,000 bond is convertible into 30 shares of Booker's $7.00 par value common stock. On January 1, 2024, holders of 70% of the bonds exercised the privilege, and converted their bonds into Booker common stock. The journal entry to record the conversion will include a credit to "Paid in Capital in Excess of Par - Common" ofOn September 1, 2025, Splish Company sold at 104 (plus accrued interest) 5,760 of its 9%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $14 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the Splish Company bonds. Interest is payable on December 1 and June 1. Prepare in general journal format the entry to record the issuance of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when 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.) Date September 1, 2025 Account Titles and Explanation Cash Bonds Payable Premium on Bonds Payable Paid-in Capital-Stock Warrants Interest Payable Debit 6120000 Credit 5760000 207360 23040…
- Mango Co. issued bonds payable on January 1, 2022. Each $1,000 bond is convertible to 10 shares of common stock after January 1, 2024. The bonds have a 5-year term, a stated rate of 8%, and pay interest annually on January 1. The bonds were issued at a premium of $25,274 which provides an effective interest rate of 6%. (Hint: Prepare an amortization table for the five-year term of the bonds. Note that 2023 is the second year in the term of the bonds.) Prepare the adjusting entry at Dec. 31 , 2023.Kingbird Inc. issued $3,000,000 of convertible 10-year bonds on July 1, 2025. The bonds provide for 11% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $56,400, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 9 shares of Kingbird Inc's $100 par value common stock for each $1,000 of bonds. On August 1, 2026, $300,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the…On March 1, 2021, E Corp. issued $1,000,000 of 10% nonconvertible bonds at 104, due on February 28, 2031. Each $1,000 bond was issued with 50 detachable stock warrants, each of which entitled the holder to purchase, for $60, one share of Evan's $30 par common stock. On March 1, 2021, the market price of each warrant was $4. By what amount should the bond issue proceeds increase shareholders' equity?
- On March 1, 2020, ABC Company issued P5,000,000 of 12% nonconvertible bonds at 103 which are due on February 28, 2025. In addition, each P1,000 bond issue was issued with 30 detachable share warrants, each of which entitled the bondholder to purchase for P50 one ordinary share of ABC Company par value P25. On March 1, 2020, the quoted market value of each warrant was P4. The market value of the bonds ex-warrant at the time of issuance is 95. What amount of the proceeds from the bond issue should ABC record as an increase in shareholders' equity? Round answer to whole number.Bundle Company issues 1,000,000 par value 10 year bonds at 102 on January 1, 2018, which Mega Corporation purchased. The coupon rate on the bonds is 9%. Interest payment are made semiannually in July 1 and January 1. On July 1, 2021, Parent Company purchased 500,000 par value of the bonds from Mega Corporation for 492,200. Bundle Company owns 65% of A Company's voting shares. During 2021, Bundle Company recorded an interest income on yhe aforementioned bonds payable of 23,100, while A Company recorded an interest expese of 44,000, in ehich 22,000 was incurred from July 1 to December 31. B Company has a comprehensive income of 500,000 while A Company has 150,000. No other intercompany transaction occurred during 2021. Assume straight-line amortization. Compute for the gain on extinguishment of bonds to be recognized in the 2021 consolidated statement of comprehensive income. Compute the comprehensive income assigned to the controlling interest for 2021. Compute the comprehensive…During 2016, Royal Corporation issued at 105, two hundred of its 8%, P 1,000 bonds in ten years. One detachable stock warrant entitling the holder to buy 20 shares of Royal’s ordinary stock was attached to each bond. Shortly after the issuance, each bond had a market value of P940, and each warrant was quoted at P60. What amount, if any, of the proceeds from the bond issuance should be recorded as part of Royal’s shareholder’s equity?
