capital: stock Warrants саpta štočk issuance? $22,039.62 $24,000.00 $20,950.59 $21,000.00
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- Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and issued on April 1, 2019, are due March 31, 2023, and pay interest semiannually on September 30 and March 31. Bats sold the bonds to yield 10%. Required: 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare any adjusting entries for the end of the fiscal year, December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. Assume the company retires the bonds on June 30, 2020, at 103 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight-line method of amortization b. effective interest method of amortizationOn July 1, 2016. Elm Company purchased cash eight P 1,000 , 9% bonds of Celebrity Corporation at P 100 plus accrued interest. The bond interest is paid semiannually each May 1 and November 1. The bond maturity date is November 1, 2017. Elm Company's annual reproting period ends December 31. Elm Company classifies this investment as trading security. At December 31, 2016 , Celebrity bonds were quoted at P 97. REQUIRED : a. Give tne entry for Elm Company to record the purchase of the bonds on July 1, 2016 b. Give the entry to record the interest collected during 2016.On January 1, 2015, LK Co purchased 5000, 5year, 9% Bonds from HM Co. at 96. Each bond costs P1000. Commission paid is P22,000. On December 31, 2015, the bonds are quoted @98, December 31, 2016, @ 102, December 31, 2017 @99 , December 31 2018 @ 101. ¼ of the bonds are sold on December 31, 2016 and the remaining on December 2018.Prepare all journal entries related to this investment assuming LK classified it as Trading Securities.Prepare all journal entries related to this investment assuming LK classified it as Available for sale Securities.How much is recognized in equity related on this investment each year assuming these are trading securities?How much is recognized in Profit or Loss related on this investment each year assuming these are available for sale securities? All data are the same as Problem 3 except that the bonds have no purchase price but a market interest of 12% on 12/31/2015.Prepare all journal entries related to this investment assuming LK classified it as Trading…
- Burn's Alley issued $1,000,000 of 10-year 8% bonds at par value on June 30, 2018. What is the journal entry for this transaction? Question 9 options: Debit Interest Expense $1M, Credit Cash $1M Debit Cash $1M, Credit Bonds Payable $1M No journal entry required. Debit Bonds Payable $1M, Credit Cash $2MOn January 1, 2016, Case Company issued P5,000,000 of 12% nonconvertible bonds at 103 which are due on February 28, 2021. In addition, each P1,000 bond was issued with 30 detachable share warrants, each of which entitled the bondholder to purchase, for P 50, one ordinary share of Case Company, par value P25. On January 1, 2016m the quoted market value of each warrant was P4. The market value of the bonds ex-warrants at the time of issuance is 95. What is the carrying amount of the bonds payable on January 1, 2016? 5,000,000 4,750,000 5,150,000 4,550,000 What amount of the proceeds from the bond issue should be recognized as an increase in shareholders’ equity? 600,000 300,000 200,000 400,000For each of the unrelated transactions described below, present the entries required to record each transaction. 2. Blossom Company issued $19,300,000 par value 10% bonds at 98. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $4. 3. Suppose Sepracor, Inc. called its convertible debt in 2020. Assume the following related to the transaction. The 11%, $9,700,000 par value bonds were converted into 970,000 shares of $1 par value common stock on July 1, 2020. On July 1, there was $56,000 of unamortized discount applicable to the bonds, and the company paid an additional $79,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method. No. Account Titles and Explanation Debit Credit 2. enter an account title for the second transaction enter a debit amount enter a credit amount enter an account…
- On May 1, 2018, Luzon Company issued P2,000,000, 5 year, 10% bonds for P2,300,000. Each P1,000 bonds had two detachable warrants eligible for the purchase of one share of Luzon’s P100 par ordinary share for P120. Without the warrants the bonds are selling at P2,078,000. What amount should Luzon Company recognize as value of the share warrants?On July 1, 2020, an interest payment date, $200,000 of Pride Co. bonds were converted into 12,000 shares of Pride Co.common stock each having a par value of $18 and a market value of $21. There is $10,000 unamortized premium on the bonds. Using the book value method, Pride would record the unamortized premium as: Debit Premium on Bonds Payable $10,000 O Debit Discount on Bonds Payable - $10,000 O Credit Premium on Bonds Payable - $10,000 O Credit Discount on Bonds Payable $10,000 ASA GRLLEE1. On January 1, 2017, Mintwood Company issued 5 year bonds with a face value of $500,000. The bonds carry a stated interest of 7% payable each January 1. 98 % = 490,o00 (a) Prepare the journal entry for the January1 issuance asşuming the bonds are issued at 98. Jon 1,20 Cosh 490, 000 Diseand Bondyble Bord> Payable (b) Prepare the journals entry at December 31 for these bonds. (c) Prepare the journal entry for the January 1 issuance assuming the bonds are issued at 103. (d) Prepare the journals entry at December 31 for these bonds. (e) Prepare the journal entry at January 1 issuance assuming the bonds are issued at 100. (f) Prepare the journal entry at December 31 for these bonds 2. On March 1, the Holden Company borrows $60,000 from New National Bank by signing a 6-month, 8%, interest-bearing note. (a) Prepare the entry on March 1 when the note was issued. (b) Prepare any adjusting entries necessary on June 30 in order to prepare the semiannual financial statements. Assume no other…
- 1. ETK's 12/31/21 Balance Sheet reported the following information: 7.8% registered bonds callable at 107 beginning in 2031, due 2035 (net of unamortized discount of $2 million) $53 million Equity - Stock Warrants $5 million The company disclosed the following information regarding their 7.8% bonds: "The bonds were issued in 2012 at 105 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond was issued with 40 detachable stock warrants, each of which entitles the holder to purchase one share of the Company's $1 par common stock for $35, beginning 2022." How much did total liabilities increase when the bonds were issued in 2012?(a) Graben Co purchases a bond for $441,014 on 1 January 20X1. It will be redeemed on 31 December 20X4 for $600,000. The bond is held at amortised cost and carries no coupon. Required Calculate the valuation of the bond for the statement of financial position as at 31 December 20X1 and the finance income for 20X1 shown in profit or loss. Compound sum of $1: (1 + r)n Year 1 2 3 4 5 2% 4% 6% 8% 10% 12% 14% 1.0200 1.0400 1.0600 1.0800 1.1000 1.1200 1.1400 1.0404 1.0816 1.1236 1.1664 1.2100 1.2544 1.2996 1.0612 1.1249 1.1910 1.2597 1.3310 1.4049 1.4815 1.0824 1.1699 1.2625 1.3605 1.4641 1.5735 1.6890 1.1041 1.2167 1.3382 1.4693 1.6105 1.7623 1.9254Bond ConversionE11B. Mendoza Corporation has $400,000 of 6 percent bonds outstanding. There is$20,000 of unamortized discount remaining on these bonds after the July 1, 2014,semiannual interest payment. The bonds are convertible at the rate of 20 shares of $5par value common stock for each $1,000 bond. On July 1, 2014, bondholders presented $300,000 of the bonds for conversion.1. Is there a gain or loss on conversion, and if so, how much is it?2. How many shares of common stock are issued in exchange for the bonds?3. In dollar amounts, how does this transaction affect the total liabilities and the totalstockholders’ equity of the company? In your answer, show the effects on fouraccounts.
