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, 2025, Tamarisk Company purchased 9% bonds having a maturity value of $330,000 for…
A: For the corporation, journal entries serves as an ongoing record of financial activities. They are…
Q: On September 1, 2020, Splish Company sold at 104 (plus accrued interest) 5,760 of its 9%, 10-year,…
A: Record general journal for issuance of bonds as shown below:
Q: Vaughn Inc. issued $3,790,000 of 10%, 10-year convertible bonds on June 1, 2025, at 99 plus accrued…
A: (a) Entry to record the interest expense at October 1, 2025:Accrual of interest expense:The interest…
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: 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: On September 30, 2023, Blossom Inc. issued $3,210,000 of 10-year, 8% convertible bonds for…
A: Let's break down the journal entry to record the issuance of the bonds on September 30, 2023:Cash…
Q: On January 1, 2025, Sage Company purchased 12% bonds having a maturity value of $284,000 for…
A: The bonds can be defined as corporate debt units and these units are the tradable assets. the…
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: (a) (b) (c) Prepare the journal entry at the date of the bond purchase. Prepare the journal entries…
A: Journal is a prime book of entry. We will pass the entries in the General Journal as under…
Q: Volker Inc. issued $2,500,000 of converitble 10-year bonds on July 1, 2017. The bonds provide for…
A:
Q: On April 1, 2021, Austere Corporation issued $320,000 of 14% bonds at 108. Each $1000 bond was sold…
A: To calculate the amount of proceeds from the bond issue that should be recorded as an increase in…
Q: lue of each stock purchase
A: Answer b. $489,250 Cash recd = 103% X 500 Nos X $1,000 = $515,000…
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: 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, 2025, Bramble Company purchased 11% bonds having a maturity value of $301,000 for…
A: Investment means an asset purchased in expectation of earning a return on such investment in future…
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: On August 1, 2020, Peyton Technology issued $900,000 of 7% bonds at 103. Bonds are due on July 31,…
A: Solution: Bond issuance price: 900,000 x 1.03 = 927,000Fair market value of bonds without warrants:…
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: 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: 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: On September 1, 2020, Splish Company sold at 104 (plus accrued interest) 5,760 of its 9%, 10-year,…
A: Formulas for the above table:
Q: On January 1, 2025, Indigo Company purchased 12% bonds having a maturity value of $310,000 for…
A: Unrealized gain means the value rise in asset value that has not yet been realized through sale or…
Q: capital: stock Warrants саpta štočk issuance? $22,039.62 $24,000.00 $20,950.59 $21,000.00
A: Step 1 A bond is a fixed income instrument that represents a loan made by an investor to a borrower.
Q: By what amount should Gorczany's shareholders' equity increase when the bonds are issued
A: A key indicator of a company's financial health is shareholders' equity, which is the net value…
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: 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: On May 1, 2021, Duck Corporation issued $2,000,000 of 8% nonconvertible bonds at 104, which are due…
A: Isssue Price of Bonds ($2000000 * 104%) $20,80,000 Fair market value of bonds ($2000000 *…
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 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 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 February 1, 2018, Cromley Motor Products issued 9% bonds, dated February 1, with a face amount of…
A: The question is based on the concept of Financial Accounting. The price of the bonds issued is the…
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: 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: A company holds a $100,000 face value corporate bond, bought January 1, 2023, paying 3% annually on…
A: Under the Amortized Cost method, Interest is Booked in books using the Effective Interest Rate, and…
Q: On April 1, 2024, Déjà Vu Company issued 12% bonds that have a total face value of $140,000 (each…
A: Investment in debt securities can be classified under three different categories based on the intent…
Q: On September 1, 2020, Crane Company sold at 104 (plus accrued interest) 3,000 of its 9%, 10-year,…
A: A bond refers to a fixed income instrument that speaks to a credit made by a speculator to a…
Q: Pronghorn Corporation issued 5,400, five year, 3% bonds at 104 on January 1, 2020. Interest is paid…
A: Journal entry : The journal entry is related to recording the transaction of the entity in the books…
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: On February 1, 2021, Cromley Motor Products issued 10% bonds, dated February 1, with a face amount…
A: Comments; since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
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…
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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- On January 1, 2016, Cooper Corporation issued $800,000 of 12.5% bonds due January 1, 2023, at 102. The bonds pay interest semiannually on June 30 and December 31. Each $1,000 bond carried 10 warrants which allowed the acquired to exchange 1 share of $10 par common stock for $50. Sometime after the bonds were issued the bonds were quoted at 98 ex-rights and each individual warrant was quoted at $5. Subsequently, on April 30, 2017, 2,000 rights were exercised. Required: 1. Prepare the journal entry to record the bond issue. 2. Prepare the journal entries on April 30, 2017, to record the exchange of the warrants for common shares.On January 1, 2025, Crane Company purchased 6% bonds, having a maturity value of $530,000 for $457,971. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2025, and mature January 1, 2035, with interest receivable June 30 and December 31 of each year. Crane Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale. The fair value of the bonds at December 31 of each year-end is as follows. 2025 2026 2027 (a) (b) (c) No. (a) $459,297 454,297 2029 (b) 449,297 (Round answers to O decimal places, e.g. 2,525. 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.) Date 2028 Prepare the journal entry at the date of the bond purchase. Prepare the journal entries to record the interest received and recognition…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 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…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 August 1, 2024, Perez Communications issued $36 million of 12% nonconvertible bonds at 105. The bonds are due on July 31, 2044. Each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase, for $50, one share of Perez Communications’ no par common stock. Interstate Containers purchased 20% of the bond issue. On August 1, 2024, the market value of the common stock was $48 per share and the market value of each warrant was $8. In February 2035, when Perez common stock had a market price of $62 per share and the unamortized discount balance was $2 million, Interstate Containers exercised the warrants it held. Questions: Prepare the journal entries on August 1, 2024, to record (a) the issuance of the bonds by Perez and (b) the investment by Interstate. Prepare the journal entries for both Perez and Interstate in February 2035, to record the exercise of the warrants.Telta Inc. issued $15,000,000 of 12%, 40-year convertible bonds on November 1, 2025, at 97 plus accrued interest. The bonds were dated July 1, 2025, with interest payable January 1 and July 1. Bond discount (premium) is amortized semiannually on a straight-line basis. On July 1, 2026, one-half of these bonds were converted into 60,000 shares of $1 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) (b) Prepare the entry to record the interest expense at December 31, 2025. Assume that accrued interest payable was credited when the bonds were issued. Credit Interest Payable for the full amount due; debit Interest Payable for the amount recognized at insurance. (Round to nearest dollar.) Prepare the entry to record the conversion on July 1, 2026. (Book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment has been made.
- Sunland Corporation issued 6,000, five year, 3% bonds at 103 on January 1, 2023. Interest is paid annually. Each $1,000 bond carried one detachable warrant allowing the holder to purchase 100 common shares in Sunland at $9 per share, the price at which Sunland shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 6%. On June 30, 2023, 1,200 of the bond holders exercised the options to buy the shares. Prepare the journal entries to record these events. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places eg. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. 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.) Date January 1, 2023 June 30, 2023 Account Titles and…Volker Inc. issued $2,500,000 of convertible 10-year bonds on July 1, 2020. The bonds provide for 12% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $54,000, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 8 shares of Volker Inc.'s $100 par value common stock for each $1,000 of bonds. On August 1, 2021, $250,000 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. August 1, 2021. (Assume the book value method is used.) b. August 31, 2021. c. December 31, 2021, including closing entries for end-of-year.On December 1, 2021, Bramble Corp.issued 680 of its 8%, $1,000 bonds at 104. Attached to each bond was one detachable stock warrant entitling the holder to purchase 1 share of Bramble's common stock. On December 1, 2021, the market value of the bonds, without the stock warrants, was 97, and the market value of each stock purchase warrant was $50. The amount of the proceeds from the issuance that should be accounted for as the initial carrying value of the bonds payable would be $700,400 O $680,000 $672,533 $665,380
