Convert bonds into Common Stock at 25 shares per bond. Par value of the stock is...
Convert bonds into Common Stock at 25 shares per bond. Par value of the stock is $2 per share and the FMV of the stock is $30 per share. There are 100 bonds with a par value of $1,000 each. The bond interest rate is 6%. There was an unamortized discount of $20,000.
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Convert bonds into Common Stock at 25 shares per bond. Par value
of the stock is...
2. Gunns Inc. issues 15,000 shares of $1 par value common stock and 25 shares of...
2. Gunns Inc. issues 15,000 shares of $1 par value common stock and 25 shares of $1,000 par value, 6% preferred stock to a private investor for $630,000. The fair value of the common stock is $40 per share per share and the fair value of the preferred stock is $1,200 per share a. Prepare the journal entry to record the transaction assuming that the fair market values (FMV) for both the common and preferred stock are known and shown...
Gunns Inc. issues 15,000 shares of $1 par value common stock and 25 shares of $1,000...
Gunns Inc. issues 15,000 shares of $1 par value common stock and 25 shares of $1,000 par value, 6% preferred stock to a private investor for $630,000. The fair value of the common stock is $40 per share and the fair value of the preferred stock is $1200 per share. Prepare the journal entry to record the transaction assuming that the fair market values (FMV) for both the common and preferred stock are known and shown below.
Gunns Inc. issues 15,000 shares of $1 par value common stock and 25 shares of $1,000...
Gunns Inc. issues 15,000 shares of $1 par value common stock and 25 shares of $1,000 par value, 6% preferred stock to a private investor for $1,900. The fair value of the common stock is $50 per share and the fair value of the preferred stock is below Prepare the journal entry to record the transaction assuming that the fair market values (FMV) for both the common and preferred stock are known and shown below. Prepare the journal entry assuming...
Buffalo Corporation has outstanding 2,000 $1,000 bonds, each convertible into 70 shares of $10 par value common stock.
Buffalo Corporation has outstanding 2,000 $1,000 bonds, each convertible into 70 shares of $10 par value common stock. The bonds are converted on December 31, 2020, when the unamortized discount is $28,600 and the market price of the stock is $21 per share. Record the conversion using the book value approach.
Net income for the year $1,210,000 7% convertible bonds issued at par ($1,000 per bond); each...
Net income for the year $1,210,000 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 1,970,000 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock 4,200,000 Common stock, $10 par value 5,820,000 Tax rate for 2021 20% Average market price of common stock $25 per share There were no changes during 2021 in the number of common shares, preferred shares, or...
On January 1, 2018, when its $30 par value common stock was selling for $80 per...
On January 1, 2018, when its $30 par value common stock was selling for $80 per share, a corporation issued $20 million of 10% convertible debentures due in 10 years. The conversion option allowed the holder of each $1,000 bond to convert it into five shares of the corporation's $30 par value common stock. The debentures were issued for $21 million. At the time of issuance, the present value of the bond payments was $18.5 million, and the corporation believes...
Dun & Harvey Inc. has 5,000,000 shares of $1 par value common stock outstanding at January...
Dun & Harvey Inc. has 5,000,000 shares of $1 par value common stock outstanding at January 1. On July 1, Dun & Harvey issued 800,000 shares at a cost of $32 per share. In addition, at December 31, 2018, 150,000 shares were issuable upon exercise of executive stock options which an exercise price of $25 per share. The average market price of the company’s stock was $30 per share. Dun & Harvey Inc. also has two convertible securities. Convertible bonds,...
Assume XYZ Company issued 2000 bonds with a par value of $100 at a $50,000 total...
Assume XYZ Company issued 2000 bonds with a par value of $100 at a $50,000 total discount. Each bond can be converted to 10 shares of common stock. The common stock has a par value of $1. Prepare the following journal entries: A. Sale of the bonds B. Conversion of the bonds when $45000 of the original discount remains unamortized. The firm offered $20000 total to the bondholders as an incentive to convert the bonds.
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, Blossom Corp. issued $12,200,000 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 $13,176,000. The present value of the bond payments at the time of issuance was $10,370,000, and the corporation believes the difference between the present...
Conversion (or stock) value What is the conversion (or stock) value of each of the following...
Conversion (or stock) value What is the conversion (or stock) value of each of the following convertible bonds? a. A $1,000-par-value bond that is convertible into 25 shares of common stock. The common stock is currently selling for $50.00 per share. b. A$1,000-par-value bond that is convertible into 12.5 shares of common stock. The common stock is currently selling for $42.00 per share. c. A$1,000-par-value bond that is convertible into 100 shares of common stock. The common stock is currently...
On January 1, 2018, when its $30 par value common stock was selling for $80 per share, a corporation issued $20 million of 10% convertible debentures due in 10 years. The conversion option allowed the holder of each $1,000 bond to convert it into five shares of the corporation's $30 par value common stock. The debentures were issued for $21 million. At the time of issuance, the present value of the bond payments was $18.5 million, and the corporation believes...
Conversion (or stock) value What is the conversion (or stock) value of each of the following convertible bonds? a. A $1,000-par-value bond that is convertible into 25 shares of common stock. The common stock is currently selling for $50.00 per share. b. A$1,000-par-value bond that is convertible into 12.5 shares of common stock. The common stock is currently selling for $42.00 per share. c. A$1,000-par-value bond that is convertible into 100 shares of common stock. The common stock is currently...
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