Converting bonds payable [5—10 min]
Manchester, Corp., has $1,900,000 of convertible bonds payable outstanding, with a bond premium of $38,000 also on the books. The bondholders have notified Manchester that they wish to convert the bonds into stock. Specifically, the bonds may be converted into 400,000 shares of Manchester’s $1 par common stock.
Requirements
1. What is Manchester’s carrying amount of its convertible bonds payable prior to the conversion?
2. Journalize Manchester’s conversion of the bonds payable into common stock. No explanation is required.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.