ZuoTi.Pro
Question

Exercise 16-2 Skysong Inc. issued $4,320,000 of 9%, 10-year convertible bonds on June 1, 2017, at...

Exercise 16-2

Skysong Inc. issued $4,320,000 of 9%, 10-year convertible bonds on June 1, 2017, at 99 plus accrued interest. The bonds were dated April 1, 2017, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis.

On April 1, 2018, $1,620,000 of these bonds were converted into 25,000 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion.

(a) Prepare the entry to record the interest expense at October 1, 2017. Assume that accrued interest payable was credited when the bonds were issued.
(b) Prepare the entry to record the conversion on April 1, 2018. (Book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment has been made.
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

で41 3 3,992 3 94400 Cos 4 320000 42 6800 43 200 10a0 u392620,000 u4y8.4 0A528.6 620000-uy 80o ooo 5 58.6 belted ho 620000 430000 129600 8600 81.4

0 0
Add a comment
Know the answer?
Add Answer to:
Exercise 16-2 Skysong Inc. issued $4,320,000 of 9%, 10-year convertible bonds on June 1, 2017, at...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Sheffield Inc. issued $4,320,000 of 9%, 10-year convertible bonds on June 1, 2020, at 99 plus...

    Sheffield Inc. issued $4,320,000 of 9%, 10-year convertible bonds on June 1, 2020, at 99 plus accrued interest. The bonds were dated April 1, 2020, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2021, $1,620,000 of these bonds were converted into 25,000 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) Prepare the entry to record the interest...

  • Indigo Inc. issued $3,900,000 of 11%, 10-year convertible bonds on June 1, 2017, at 97 plus...

    Indigo Inc. issued $3,900,000 of 11%, 10-year convertible bonds on June 1, 2017, at 97 plus accrued interest. The bonds were dated April 1, 2017, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2018, $1,462,500 of these bonds were converted into 26,000 shares of $19 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) Prepare the entry to record the interest...

  • Wildhorse Inc. issued $7.0 million of 10-year, 9%, convertible bonds on June 1, 2017 at 98...

    Wildhorse Inc. issued $7.0 million of 10-year, 9%, convertible bonds on June 1, 2017 at 98 plus accrued interest. The bonds were dated April 1, 2017, with interest payable April 1 and October 1. Bond discount is amortized semi-annually. Bonds without conversion privileges would have sold at 97 plus accrued interest. On April 1, 2018, $1.75 million of these bonds were converted into 35,000 common shares. Accrued interest was paid in cash at the time of conversion but only to...

  • ABC Inc issued $6 million of 10-year, 9% convertible bonds on June 1, 2018. These bonds...

    ABC Inc issued $6 million of 10-year, 9% convertible bonds on June 1, 2018. These bonds were issued at 98 plus accrued interest. The bonds were dated April 1, 2018, with interest payable April 1 and October 1. Bond discount is amortized semi-annually. Similar bonds without the conversion privileges would have sold at 97 plus accrued interest. On April 1, 2018, $1.5 million of these bonds were converted into 30,000 common shares. Accrued interest was paid in cash at the...

  • Martinez Inc. issued $3,800,000 of 10%, 10-year convertible bonds on June 1, 2020, at 98 plus...

    Martinez Inc. issued $3,800,000 of 10%, 10-year convertible bonds on June 1, 2020, at 98 plus accrued interest. The bonds were dated April 1, 2020, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2021, $1,425,000 of these bonds were converted into 26,000 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) Prepare the entry to record the interest...

  • Sage Inc. issued $3,670,000 of 10%, 10-year convertible bonds on June 1, 2020, at 98 plus...

    Sage Inc. issued $3,670,000 of 10%, 10-year convertible bonds on June 1, 2020, at 98 plus accrued interest. The bonds were dated April 1, 2020, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2021, $1,376,250 of these bonds were converted into 36,000 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) Prepare the entry to record the interest...

  • Garr Co. issued $4,100,000 of 12%, 5-year convertible bonds on December 1, 2017 for $4,117,323 plus...

    Garr Co. issued $4,100,000 of 12%, 5-year convertible bonds on December 1, 2017 for $4,117,323 plus accrued interest. The bonds were dated April 1, 2017 with interest payable April 1 and October 1. Bond premium is amortized each interest period on a straight-line basis. Garr Co. has a fiscal year end of September 30. On October 1, 2018, $2,050,000 of these bonds were converted into 28,000 shares of $15 par common stock. Accrued interest was paid in cash at the...

  • Oriole Inc. issued $3,940,000 of 9%, 10-year convertible bonds on June 1, 2020, at 98 plus...

    Oriole Inc. issued $3,940,000 of 9%, 10-year convertible bonds on June 1, 2020, at 98 plus accrued interest. The bonds were dated April 1, 2020, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2021, $1,477,500 of these bonds were converted into 28,000 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) Prepare the entry to record the interest...

  • Aubrey Inc. issued $4,000,000 of 10%, 10-year convertible bonds on June 1, 2017, at 98 plus...

    Aubrey Inc. issued $4,000,000 of 10%, 10-year convertible bonds on June 1, 2017, at 98 plus accrued interest. The bonds were dated April 1, 2017, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2018, $1,500,000 of these bonds were converted into 30,000 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion (a) Prepare the entry to record the interest...

  • Sunland Inc. issued $6 million of 10-year, 10% convertible bonds on June 1, 2020, at 96...

    Sunland Inc. issued $6 million of 10-year, 10% convertible bonds on June 1, 2020, at 96 plus accrued interest. The bonds were dated April 1, 2020, with interest payable April 1 and October 1. Bond discount is amortized semi-annually. Bonds without conversion privileges would have sold at 95 plus accrued interest. On April 1, 2021, $1.50 million of these bonds were converted into 30,000 common shares. Accrued interest was paid in cash at the time of conversion. Assume that the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT