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On January 1, 2016, Skysong Company issued 10-year, $94,000 face value, 6% bonds at par interest payable annually on January 1). Each $900 bond is convertible into 29 shares of Skysong $2 par value common stock. The company has had 9,000 shares of common stock (and no preferred stock) outstanding throughout its life. None of the bonds have been converted as of the end of 2017. Skysong also has adopted a stock-option plan that granted options to key executives to...
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On January 1, 2016, Sandhill Company issued 10-year, $104,000 face value, 6% bonds at par interest payable annually on January 1). Each $1,100 bond is convertible into 30 shares of Sandhill $2 par value common stock. The company has had 11,000 shares of common stock (and no preferred stock) outstanding throughout its life. None of the bonds have been converted as of the end of 2017. Sandhill also has adopted a stock-option plan that granted options to key executives to...
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On January 1, 2016, Garner issued 10-year, $200,000 face value,
6% bonds at par. Each $1,000 bond is convertible into 30 shares of
Garner $2 par value common stock. The company has had 10,000 shares
of common stock (and no preferred stock) outstanding throughout its
life. None of the bonds have been converted as of the end of 2017.
(Ignore all tax effects.)
Requirement 1:
A.) Accounting Prepare the journal entry Garner would have made
on January 1, 2016, to...
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On January 1, 2019, Culver issued 10-year, $300,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Culver $2 par value common stock. The company has had 10,000 shares of common stock (and no preferred stock) outstanding throughout its life. None of the bonds have been converted as of the end of 2020. (Ignore all tax effects.) (c) Assume that 75% of the holders of Culver's convertible bonds convert their bonds to stock on...
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On January 1, 2016, when its $30 par value common stock was
selling for $80 per share, Bonita Corp. issued $12,500,000 of 8%
convertible debentures due in 20 years. The conversion option
allowed the holder of each $1,000 bond to convert the bond into
five shares of the corporation’s common stock. The debentures were
issued for $13,500,000. The present value of the bond payments at
the time of issuance was $10,625,000, and the corporation believes
the difference between the present...
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Exercise 16-4 On January 1, 2016, when its $30 par value common stock was selling for $80 per share, Pina Corp. issued $12,500,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation's common stock. The debentures were issued for $13,500,000. The present value of the bond payments at the time of issuance was $10,625,000, and the corporation believes the difference between...
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Your answer is partially correct. Try again. On January 1, 2016, when its $30 par value common stock was selling for $80 per share, Headland Corp. issued $11,500,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation's common stock. The debentures were issued for $12,420,000. The present value of the bond payments at the time of issuance was $9,775,000, and the...
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On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Sweet Corp. issued $11,200,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation's common stock. The debentures were issued for $12,096,000. The present value of the bond payments at the time of issuance was $9,520,000, and the corporation believes the difference between the present...
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Exercise 10-9 On January 1, 2017, Forrester Company issued $351,500, 9%, 5-year bonds at face value. Interest is payable annually on January 1. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 1 (b) Prepare the journal entry to record the accrual of interest on December 31, 2017. (Credit account titles are automatically indented when...
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On January 1, 2019, Concord issued 10-year, $300,000 face value,
6% bonds at par. Each $1,000 bond is convertible into 30 shares of
Concord $2 par value common stock. The company has had 10,000
shares of common stock (and no preferred stock) outstanding
throughout its life. None of the bonds have been converted as of
the end of 2020. (Ignore all tax effects.)
a. Prepare the journal entry Concord would have made on January
1, 2019, to record the issuance...
On January 1, 2016, Skysong Company issued 10-year, $94,000 face value, 6% bonds at par interest payable annually on January 1). Each $900 bond is convertible into 29 shares of Skysong $2 par value common stock. The company has had 9,000 shares of common stock (and no preferred stock) outstanding throughout its life. None of the bonds have been converted as of the end of 2017. Skysong also has adopted a stock-option plan that granted options to key executives to...
On January 1, 2016, Sandhill Company issued 10-year, $104,000 face value, 6% bonds at par interest payable annually on January 1). Each $1,100 bond is convertible into 30 shares of Sandhill $2 par value common stock. The company has had 11,000 shares of common stock (and no preferred stock) outstanding throughout its life. None of the bonds have been converted as of the end of 2017. Sandhill also has adopted a stock-option plan that granted options to key executives to...
On January 1, 2019, Culver issued 10-year, $300,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Culver $2 par value common stock. The company has had 10,000 shares of common stock (and no preferred stock) outstanding throughout its life. None of the bonds have been converted as of the end of 2020. (Ignore all tax effects.) (c) Assume that 75% of the holders of Culver's convertible bonds convert their bonds to stock on...
On January 1, 2016, when its $30 par value common stock was
selling for $80 per share, Bonita Corp. issued $12,500,000 of 8%
convertible debentures due in 20 years. The conversion option
allowed the holder of each $1,000 bond to convert the bond into
five shares of the corporation’s common stock. The debentures were
issued for $13,500,000. The present value of the bond payments at
the time of issuance was $10,625,000, and the corporation believes
the difference between the present...
Exercise 16-4 On January 1, 2016, when its $30 par value common stock was selling for $80 per share, Pina Corp. issued $12,500,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation's common stock. The debentures were issued for $13,500,000. The present value of the bond payments at the time of issuance was $10,625,000, and the corporation believes the difference between...
Your answer is partially correct. Try again. On January 1, 2016, when its $30 par value common stock was selling for $80 per share, Headland Corp. issued $11,500,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation's common stock. The debentures were issued for $12,420,000. The present value of the bond payments at the time of issuance was $9,775,000, and the...
On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Sweet Corp. issued $11,200,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation's common stock. The debentures were issued for $12,096,000. The present value of the bond payments at the time of issuance was $9,520,000, and the corporation believes the difference between the present...
Exercise 10-9 On January 1, 2017, Forrester Company issued $351,500, 9%, 5-year bonds at face value. Interest is payable annually on January 1. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 1 (b) Prepare the journal entry to record the accrual of interest on December 31, 2017. (Credit account titles are automatically indented when...
On January 1, 2019, Concord issued 10-year, $300,000 face value,
6% bonds at par. Each $1,000 bond is convertible into 30 shares of
Concord $2 par value common stock. The company has had 10,000
shares of common stock (and no preferred stock) outstanding
throughout its life. None of the bonds have been converted as of
the end of 2020. (Ignore all tax effects.)
a. Prepare the journal entry Concord would have made on January
1, 2019, to record the issuance...