INTERMEDIATE ACCOUNTING WITH AIR FRANCE-KLM 2013 ANNUAL REPORT

8th Edition

ISBN: 9781259546235

Author: J. David Spiceland, James Sepe, Mark W. Nelson, Wayne M Thomas

Publisher: McGraw-Hill Education

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Textbook Question

Chapter 14, Problem 14.15Q

Air Supply issued $6 million of 9%, 10-year convertible bonds at 101. The bonds are convertible into 24,000 shares of common stock. Bonds that are similar in all respects except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). What amount should Air Supply record as equity and how much as a liability when the bonds are issued?

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Chapter 14, Problem 14.14Q

Chapter 14, Problem 14.16Q

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Chapter 14 Solutions

INTERMEDIATE ACCOUNTING WITH AIR FRANCE-KLM 2013 ANNUAL REPORT

Ch. 14 - How is periodic interest determined for...Ch. 14 - As a general rule, how should long-term...Ch. 14 - How are bonds and notes the same? How do they...Ch. 14 - What information is contained in a bond indenture?...Ch. 14 - Prob. 14.5Q Ch. 14 - How is the price determined for a bond (or bond...Ch. 14 - A zero-coupon bond pays no interest. Explain.Ch. 14 - Prob. 14.8Q Ch. 14 - Compare the two commonly used methods of...Ch. 14 - Prob. 14.10Q

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Solution Summary: The author explains that convertible bonds can be easily converted into common stock at the option of issuance of the bond. The amount should be recorded as equity, and how much liability; when the bonds are issued.

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Chapter 14 Solutions