Marigold Inc. issued $4,780,000 par value, 7% convertible bonds at 95 for cash. If the bonds...
Marigold Inc. issued $4,780,000 par value, 7% convertible bonds
at 95 for cash. If the bonds had not included the conversion
feature, they would have sold for 95.
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. If no entry is required,
select "No Entry" for the account titles and enter 0 for the
amounts.)
|
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|
|
enter an account title |
enter a debit amount |
enter a credit amount |
|
enter an account title |
enter a debit amount |
enter a credit amount |
|
enter an account title |
enter a debit amount |
enter a credit amount |
Homework Answers
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. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
|
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|
| Cash (4780000*.95) | 4541000 | |
| Discount on bonds payable | 239000 | |
| Bonds payable | 4780000 |
Add Answer to:
Marigold Inc. issued $4,780,000 par value, 7% convertible bonds
at 95 for cash. If the bonds...
Current Attempt in Progress Crane Inc. issued $4,190,000 par value, 7% convertible bonds at 95 for...
Current Attempt in Progress Crane Inc. issued $4,190,000 par value, 7% convertible bonds at 95 for cash. If the bonds had not included the conversion feature, they would have sold for 95. 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. If no entry is required, select "No Entry for the account titles and enter for the amounts) Account Titles and Explanation Debit Credit
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On January 1, 2022, Sheridan Company issued bonds with a face value of $650,000. The bonds carry a stated in...
On January 1, 2022, Sheridan Company issued bonds with a face
value of $650,000. The bonds carry a stated interest of 8% payable
each January 1.
Prepare the journal entry for the issuance assuming the bonds
are issued at 98. (Credit account titles are
automatically indented when the amount is entered. Do not indent
manually.)
Account Titles and Explanation
Debit
Credit
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit...
Exercise 16-04 On January 1, 2019, when its $30 par value common stock was selling for...
Exercise 16-04
On January 1, 2019, when its $30 par value common stock was
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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 $12,744,000. The present value of the bond payments at
the time of issuance was $10,030,000, and the corporation believes
the difference between...
Sunland Capital Ltd. issued 550 convertible $1,000 bonds at 103. After issuance, similar bonds were sold...
Sunland Capital Ltd. issued 550 convertible $1,000 bonds at 103. After issuance, similar bonds were sold at 97. Assume that Sunland Capital Ltd. follows IFRS and recorded the issuance of the bonds and conversion rights accordingly. On a date when the bonds had a carrying value of $538,000, Bantry paid $13,200 to the bondholders to induce early conversion. Record the conversion using the book value method. (Credit account titles are automatically indented when the amount is entered. Do not indent...
Marin Corporation has outstanding 2,300 $1,000 bonds, each convertible into 40 shares of $10 par value...
Marin Corporation has outstanding 2,300 $1,000 bonds, each convertible into 40 shares of $10 par value common stock. The bonds are converted on December 31, 2020, when the unamortized discount is $27,900 and the market price of the stock is $21 per share. Record the conversion using the book value approach. (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 0...
On January 1, 2019, when its $30 par value common stock was selling for $80 per...
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...
Question 35 On January 1, 2015, Bose Company issued bonds with a face value of $600,000....
Question 35 On January 1, 2015, Bose Company issued bonds with a face value of $600,000. The bonds carry a stated interest of 7% payable each January 1. Prepare the journal entry for the issuance assuming the bonds are issued at 95. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare the journal entry for the issuance assuming the bonds are issued at 105. (Credit account titles...
On January 1, 2019, when its $30 par value common stock was selling for $80 per...
On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Sunland Corp. issued $10,600,000 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 $11.448,000. The present value of the bond payments at the time of issuance was $9,010,000, and the corporation believes the difference between the present...
Current Attempt in Progress Crane Inc. issued $4,190,000 par value, 7% convertible bonds at 95 for cash. If the bonds had not included the conversion feature, they would have sold for 95. 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. If no entry is required, select "No Entry for the account titles and enter for the amounts) Account Titles and Explanation Debit Credit
Ivanhoe Company issued $12.000.000 par ex bonds at One deachable stock purchase wat was with each $100 parvatubond. At the time of dance, the warrants were selling for $2 Gede accounts are automatically indented when amount is entered. Do not indet manuality s e ctory for the courts and enter the amounts Account Titles and Explanation Debit We were unable to transcribe this imageSuppose Google Inc. called its convertible debitin 2017. Assume the following related to the traction. The $3.700.000...
On January 1, 2022, Sheridan Company issued bonds with a face
value of $650,000. The bonds carry a stated interest of 8% payable
each January 1.
Prepare the journal entry for the issuance assuming the bonds
are issued at 98. (Credit account titles are
automatically indented when the amount is entered. Do not indent
manually.)
Account Titles and Explanation
Debit
Credit
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit...
Exercise 16-04
On January 1, 2019, when its $30 par value common stock was
selling for $80 per share, Bridgeport Corp. issued $11,800,000 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 $12,744,000. The present value of the bond payments at
the time of issuance was $10,030,000, and the corporation believes
the difference between...
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...
Question 35 On January 1, 2015, Bose Company issued bonds with a face value of $600,000. The bonds carry a stated interest of 7% payable each January 1. Prepare the journal entry for the issuance assuming the bonds are issued at 95. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare the journal entry for the issuance assuming the bonds are issued at 105. (Credit account titles...
On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Sunland Corp. issued $10,600,000 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 $11.448,000. The present value of the bond payments at the time of issuance was $9,010,000, and the corporation believes the difference between the present...
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