How to prepare the Journal entries vertible Bond EntriesChart of AccountssuononnsuGeneral JournalInstructions(XNolan Corporation has outstanding convertible bonds with a face value of $15,000 and a current book value of $17,500. Each $1,000 bond is convertible into 25shares of common stock (par value $5 per share). All the bonds are converted into common stock on June 1 when the market value of Nolan's common stock is$50 per share.Required:Using the book value method, prepare the journal entry for Nolan to record the conversion.NextPrevious9:08 PMCheck My Work12/1/2621

Face value of common stock = (Face value of bonds / $1000) x no. of shares x par value per share =…

Answered: Nolan Corporation has outstanding…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

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Chapter15: Shareholders’ Equity: Capital Contributions And Distributions

Section: Chapter Questions

Problem 20E

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Allante Corporate issued 50 bonds with a face value of $1,000 and a stated rate of 4% and received $45,000. What is the journal entry to record the sale of the bonds?
Piedmont Corporation issued $200,000 of 10-year bonds at par. The bonds have a stated rate of 6% and pay interest annually. What is the journal entry to record the first interest payment to the bondholders?
Medhurst Corporation issued $90,000 in bonds for $87,000. The bonds had a stated rate of 8% and pay interest quarterly. What is the journal entry to record the sale of the bonds?
On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semi-annually. What is the journal entry to record the first payment to the bondholders?
(Conversion of Bonds) Vargo Company has bonds payable outstanding in the amount of $500,000, and the Premium on Bonds Payable account has a balance of $7,500. Each $1,000 bond is convertible into 20 shares of preferred stock of par value of $50 per share. All bonds are converted into preferred stock.InstructionsAssuming that the book value method was used, what entry would be made?
3 N is Prepare Garzon Company's journal entries to record the following transactions for the current year. January 1 Purchases 8.5% bonds (as a held-to-maturity investment) issued by PBS at a cost of $52,800, which is the par value. June 30 Receives first semiannual payment of interest from PBS bonds. December 31 Receives a check from PBS in payment of principal ($52,800) and the second semiannual payment of interest. View transaction list Journal entry worksheet 1 2 3 Purchases 8.5% bonds (as a held-to-maturity investment) issued by PBS at a cost of $52,800, which is the par value. Date January 01 Note: Enter debits before credits. General Journal *** Debit Credit
Recording the Issuance of Convertible Bonds Stonewall Corporation issued $70,000 of 5%, 10-year convertible bonds. Each $1,000 bond is convertible to 10 shares of common stock (par $50) of Stonewall Corporation. The bonds were sold at 105 on January 1, 2020. Provide the entry for Stonewall Corporation on January 1, 2020, to record the issuance of the bonds. Note: List multiple debits or credits (when applicable) in alphabetical order. Date Account Name Dr. Cr. Jan. 1, 2020 Answer Answer Answer Answer Answer Answer Answer Answer Answer
12. On 1/1/21, AB Company sold $100,000, 10%, 10 year bonds at 96. Complete the entries for the bond issuance and the first year interest accrual (including amortization of the discount). Account Debit Credit
Convertible Debt – SHOW ALL CALCULATIONS Nexus Ltd. issued convertible bonds on July 1, 2004. The $5,000,000 bonds pay annual interest of 8% each July 1 and mature on July 1, 2020. Each $1,000 bond is convertible into 50 common shares at the investor’s option. Nexus received proceeds of $5,350,000 for the bond at issue date. The market (yield) rate is 9%. Required: Prepare the journal entry on Nexus’ books at issuance using the incremental method. Assume Nexus decided to repay (retire) the bonds early on July 1, 2008, after interest is recorded. Record the early repayment assuming Nexus pays investors $5,095,000 of which $728,000 is allocated to the conversion rights. Instead of part b) assume investor’s decided to convert 30% of their bonds at July 1, 2008, after interest is recorded. Record the conversion on Nexus’ books.
Transactions for Bond (Held-to-Maturity) Investments Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, 2OY5. The following are bond (held-to-maturity) transactions by Rekya Mart Inc., which has a fiscal year ending on December 31: 20Y5 Apr. 1. Purchased $36,000 of Smoke Bay 5%, 10-year bonds at their face amount plus accrued interest of $300. The bonds pay interest semiannually on February 1 and August 1. Purchased $114,000 of Geotherma Co. 6%, 12-year bonds at their face amount plus accrued interest of $285. The bonds pay interest semiannually on May 1 and November May 16. 1. Aug. 1. Received semiannual interest on the Smoke Bay bonds. Sept. Sold $14,400 of Smoke Bay bonds at 103 plus accrued interest of $60. 1. Nov. 1. Received semiannual interest on the Geotherma Co. bonds. Dec. 31 Accrued interest on the Smoke Bay bonds. Dec. 31 Accrued interest on the Geotherma Co. bonds. 20Y6 Feb. 1. Received semiannual interest on the Smoke Bay bonds.…
Accounting on 7/2/Y1 Loch Ness, Inc. purchased 50 of the $1,000 face bonds issued by EBerry Corp. Loch Ness paid $1,000 for each bond. The EBerry Corp. bonds were trading at 108 on 12/31/Y1 and at 98 on 12/31/Y2. Loch Ness sold all 50 of the EBerry bonds on 7/1/Y3 for when the market price was 104. They prepare financial statements on December 31st each year. Prepare all the JE needed for Loch Ness's investment in EBerry. Show calculation
Case B On 1 November 20X4, XBL Communications Ltd. issued a convertible bond that was convertible in 12 years' time into 500,000 common shares at the investor's option. The bond had a $7,000,000 par value, and 6% interest was paid semi-annually on 31 October and 30 April. The bond sold for $7,900,000 when the market interest rate was 8%. Required: Provide entries on issuance and on 31 December 20X4, the fiscal year-end.

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