The journal for recording conversion of bonds. Given information: Company issued bonds worth $3,000,000 Unamortized premium is worth $25,700. Each $1,000 bond converted into 20 shares.

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Answer 1

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Chapter 14, Problem 14.28BE

To determine

To prepare: The journal for recording conversion of bonds.

Given information:

Company issued bonds worth $3,000,000

Unamortized premium is worth $25,700.

Each $1,000 bond converted into 20 shares.

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If bonds with a face value of $124000 are converted into common stock when the carrying value of the bonds is $118000, the entry to record the conversion will include a debit to O Bonds Payable equal to the market price of the bonds on the date of conversion. O Bonds Payable for $124000. O Discount on Bonds Payable for $6000. O Bonds Payable for $118000. eTextbook and Media Save for Later Attempts: 0 of 2 used Submit Answer @ 3 4 5 6 7 W e у S g h j k V b n m alt ctrl

The following are independent situations. 1. Wildhorse Co. redeemed $125,100 face value, 9% bonds on June 30, 2020, at 103. The carrying value of the bonds at the redemption date was $114,100. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded. prepare the appropriate journal entry for the redemption or conversion of the bonds.

2) On January 1, 2020, CBT Corp issued 20,000, 20 year, $1,000 bonds. The bonds have an annual coupon of $50, payable on December 31 of each year. Each bond can be convertible in to five common shares. The bonds sold for 120 and it is estimated that the bonds would have sold for 105 if they did not have the convertible option. Required: a. Prepare the journal entry to recognize the bond sale made by CBT on January 1, 2020. b. On January 1, 2023, 2,000 bonds were converted into common shares. Prepare the journal entry to recognize the conversion transaction.

Answer 2

Question

Chapter 14, Problem 14.28BE

To determine

To prepare: The journal for recording conversion of bonds.

Given information:

Company issued bonds worth $3,000,000

Unamortized premium is worth $25,700.

Each $1,000 bond converted into 20 shares.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 14, Problem 14.28BE

To determine

To prepare: The journal for recording conversion of bonds.

Given information:

Company issued bonds worth $3,000,000

Unamortized premium is worth $25,700.

Each $1,000 bond converted into 20 shares.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 14, Problem 14.28BE

To determine

To prepare: The journal for recording conversion of bonds.

Given information:

Company issued bonds worth $3,000,000

Unamortized premium is worth $25,700.

Each $1,000 bond converted into 20 shares.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 14, Problem 14.28BE

To determine

To prepare: The journal for recording conversion of bonds.

Given information:

Company issued bonds worth $3,000,000

Unamortized premium is worth $25,700.

Each $1,000 bond converted into 20 shares.

Answer 6

Chapter 14, Problem 14.28BE

To determine

To prepare: The journal for recording conversion of bonds.

Given information:

Company issued bonds worth $3,000,000

Unamortized premium is worth $25,700.

Each $1,000 bond converted into 20 shares.

Answer 7

Chapter 14, Problem 14.28BE

To determine

To prepare: The journal for recording conversion of bonds.

Given information:

Company issued bonds worth $3,000,000

Unamortized premium is worth $25,700.

Each $1,000 bond converted into 20 shares.

Answer 8

Expert Solution & Answer

Answer 9

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Answer 10

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Answer 11

Ch. 14 - What conditions or terms does a note payable...Ch. 14 - If the market rate of interest exceeds the face or...Ch. 14 - What is included in bond issue costs and how...Ch. 14 - Prob. 14.4Q Ch. 14 - When a bond is issued at a discount, will its...Ch. 14 - Prob. 14.6Q Ch. 14 - Prob. 14.7Q Ch. 14 - Under IFRS, how do firms account for convertible...Ch. 14 - Prob. 14.9Q Ch. 14 - Can companies reclassify short-term debt expected...

The journal for recording conversion of bonds. Given information: Company issued bonds worth $3,000,000 Unamortized premium is worth $25,700. Each $1,000 bond converted into 20 shares.

Solution Summary: The author explains the journaling process for recording the transactions of an organization in a chronological order.

Videos

To prepare: The journal for recording conversion of bonds.

Given information:

Company issued bonds worth $3,000,000

Unamortized premium is worth $25,700.

Each $1,000 bond converted into 20 shares.

Want to see the full answer?

Chapter 14 Solutions

The journal for recording conversion of bonds. Given information: Company issued bonds worth $3,000,000 Unamortized premium is worth $25,700. Each $1,000 bond converted into 20 shares.

Solution Summary: The author explains the journaling process for recording the transactions of an organization in a chronological order.

Videos

To prepare: The journal for recording conversion of bonds. Given information: Company issued bonds worth $3,000,000 Unamortized premium is worth $25,700. Each $1,000 bond converted into 20 shares.

Want to see the full answer?

Chapter 14 Solutions

To prepare: The journal for recording conversion of bonds.

Given information:

Company issued bonds worth $3,000,000

Unamortized premium is worth $25,700.

Each $1,000 bond converted into 20 shares.