A conversion of a face value $1 million convertible bond for $1 million of common stock would most likely be: C . reported as supplementary information to the cash fl ow statement.
Q: of P200. On January 1, 20x1, the bonds are selling at 101 without the conversion feature. The…
A: Bond Redemption: A bond redemption is a full refund of the bond's principle (the amount you…
Q: On January 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P5,200,000. The bonds…
A: Redemption of Bond: A bond redemption is a complete repayment of the bond's principal amount (the…
Q: A corporation issues $26,000,000 of 9% bonds to yield interest at the rate of 7%. (a) Was the amount…
A: the amount related to the bond issue : 1) Face amount is $26,000,000
Q: The following information is related to ABC Company’s 10% convertible bonds as of December 31, 2020:…
A: Calculation of market value of bonds:
Q: On January 1, 2021, Darnell Window and Pane issued $18 million of 10-year, zero-coupon bonds for…
A: Journal entry is the process o recording the business transactions in the accounting books for the…
Q: A conversion of a face value $1 million convertible bond for $1 million of common stock would most…
A: A conversion of a face value $1 million convertible bond for $1 million of common stock is a non…
Q: 4. On January 1, 20x1, an entity issues 9%, 3-year, P3,000,000 bonds at a price that reflects a…
A: Face Value = 3,000,000 Yield = 14% Coupon = Coupon Rate * Face Value = 9%*3000000 = 270,000 Time…
Q: On July 1, 2020, 2-SO Company issued 10% bonds with a maturity value of P5,000,000 together with…
A: Premium on Issue of Ordinary Shares = ( Issue Price - Par Value ) x Number of Shares Computation…
Q: Palestine, Inc. issued JOD2,000,000 par value, 7% convertible bonds at 99 for cash. The net present…
A: Bonds are a form of debt or loan issued by the company on which company has to make regular interest…
Q: Required - In accordance with IAS 33 Earnings per share 3. Compute basic earnings per share for 2019…
A: Computation of EPS for 2019: EPS = Net income available for equity shareholders / No of shares…
Q: n January 1, 2022, Cai Ltd. issued a 10% convertible bond at par, with a face value of ¥100,000,…
A: Journal entry is the primary reporting of the transactions relating to business in the books of…
Q: If bonds with a face value of $124000 are converted into common stock when the carrying value of the…
A: Each of these transactions requires a diary entry. It's vital to remember that we're looking at the…
Q: On Jan. 1, 2021, Gel Co. settled a P 1,000,000 loan by issuing to the lender 10,000 shares with par…
A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…
Q: On July 1, 2020, an interest payment date, $200,000 of Pride Co. bonds were converted into 12,000…
A: When the bonds were converted into equity shares then the balance in Unamortized premium on bonds…
Q: Bonds Payable has a balance of $1,000,000, and Discount on Bonds Payable has a balance of $15,500.…
A: Bonds payable are kind of long term debt generally issued by governments and corporations. The…
Q: On January 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P4,800,000. The bonds…
A: As per PFRS 9 Financial instruments ,Issue of bond will be considered as Financial instruments as it…
Q: The below information will be used for the next two questions. A Company issued a convertible bond…
A: Convertible Bonds- Convertible bonds are investment bonds in which bondholders have the option of…
Q: Required - In accordance with IAS 33 Earnings per share a. Compute basic earnings per share for…
A: Earnings per share shows the company’s earning per outstanding share. It is generally calculated on…
Q: Bay Company had P600,000, convertible 8% bonds payable outstanding on June 30. Each P1,000 bond was…
A: Working note: Journal entry for the bond conversion: Date Account titles and explanation Debit…
Q: Under each of the following plans, the securities will be issued at their par or face amount, and…
A: Earning Per Share Formula: EPS = Earnings available to equity shareholders / No. of Common Shares.…
Q: A conversion of a face value $1 million convertible bond for $1 million of common stock would most…
A: Cash flow statement is broadly divided into 3 activities which are Cash Flow from Operating…
Q: Shaffer Corporation issued 100, $1,000, 10% convertible bonds in 2019 at face value. Each bond is…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: (b) Issuance of $2 million, 8% bonds at face value. Complete the following table, and indicate which…
A: Required table is given below:
Q: The December 31, 2020, balance sheet of Windsor Corp. is as follows. 9% callable, convertible…
A: Journal is the book of original entry in which all the transactions of the business are recorded…
Q: Entity A had the following instruments outstanding all throughout 20x1:12% convertible bonds payable…
A: Earning per share The purpose of calculating earning per share in the business entity which can know…
Q: Why Couldn’t This Be Easy, Inc. has two issues of securities outstanding: common stock and…
A: Solution : Firstly we should compute issue price of bonds A B 1 Face…
Q: On January 1, 2020, ABC Corporation issued P5,000,000, 12%, convertible bonds. The privilege allows…
A: The above question relates to split accounting of compound financial instrument into debt and equity…
Q: Equity swap On January 1, 20x1, an entity issues 10,000 of its own shares, with par value per…
A: Note means the written instrument which is accepted by one person promising the other person to pay…
Q: Cagney Company sold $248,000 of bonds on January 1, 2024. A portion of the amortization table…
A: In order to determine the stated interest rate, the Interest payment is required to be divided by…
Q: If bonds with a face value of $124000 are converted into common stock when the carrying value of the…
A: Bonds payable have a face value of $124000 which is shown in the statements. $6000 will be shown as…
Q: Question: Akers Company invests its excess cash in marketable securities. At the beginning of 2019,…
A: Available for sale securities are reported at their fair value in the Balance sheet at the end of…
Q: Shaffer Corporation issued 140, $1,000, 10% convertible bonds in 2019 at face value. Each bond is…
A: EPS termed as Earnings per share which refers to the monetary value of the earnings per share…
Q: A bond issue of $50,000 with a carrying value of $49,000 is converted into $10 par value common…
A: Book Value method is a method of recording the conversion of the bonds into common stocks. Under the…
Q: Th e management of Bank EZ repurchases its own bonds in the open market. Th ey pay€6.5 million for…
A: Bonds are financial instruments which provides fixed returns to its holders. Bonds actually, have a…
Q: Required Compute the cash proceeds from bond issues under the following terms. For each gase,…
A: The binds are the financial instruments used by the business to raise money from the market.
Q: In 2021, a company issued 6% bonds with a maturity value of P40,000, together with 1,000 shares of…
A: Increase in share premium as a result of this transaction will be Amount allocated to ordinary…
Q: Blue Company reported the following financial liabilities on December 31, 2020: 9% debentures,…
A: Term bonds are debts with a due date. Therefore 9% debentures & 11% collateral trust bonds are…
Q: Chandelier Company issued 4-year P5,000,000 face value of 14% convertible bonds at 106 on January…
A: The corporation for raising funds through debts sometimes follows the method of issuing bonds with…
Q: On January 1, 2025, Ariana Corporation issued its 8%, 5-year convertible debt instrument with a face…
A: The correct answer is for the above question is given in the following steps for your reference.
Q: On January 1, Jim Shorts Corporation issued bonds for $580 million. This bond issue was originally…
A: As per the indirect method of preparation of statement of cash flows, net income is adjusted for…
Q: On March 1, 2021, Doll Co. issued 10-year convertible bonds at 106. During 2024, the bonds were…
A: Treatment of the reporting of the cash proceeds from the issuance of the convertible bonds should be…
Q: Preented here are lang tmabity tema for Maint December 31, 207. Bonds pavabie (e 2021) Sar0.000…
A: Balance sheet is a statement of the assets, liabilities and capital of a business at a particular…
Q: Kiley Corporation had these transactions during 2022. Analyze the transactions and indicate whether…
A: Operating activity refers to those activities which involves the company's core business activities…
Q: Archer Inc. issued $4,000,000 par value, 7% convertible bonds at 99 for cash. If the bonds had not…
A: Working note 1: Compute the discount on issue of bonds.
Q: On January 1, 2021, Gless Textiles issued $12 million of 9%, 10-year convertible bonds at 101. The…
A: Journalize the given transactions in the books of Gless:
Q: Compute the cash proceeds from bond issues under the following terms. For each case, indicate…
A: Solution: Computation of cash proceeds from bond and same is issued on discount or premium is as…
Q: A 12% P1,000,000 face value bond with interest payable June 30 and December 31, which matures on…
A: The total price on sale of bonds will be face value * quoted price at the date of sale
A conversion of a face value $1 million convertible bond for $1 million of common stock would most likely be: C . reported as supplementary information to the cash fl ow statement.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A conversion of a face value $1 million convertible bond for $1 million of common stock would most likely be: B . reported as a $1 million fi nancing cash outfl ow and infl ow.A conversion of a face value $1 million convertible bond for $1 million of common stock would most likely be: A . reported as a $1 million investing cash infl ow and outfl owComputalog Inc. showed the following on its December 31, 2023, balance sheet: Bonds payable, convertible $ 4,040,000 Less: Unamortized discount 14,544 $ 4,025,456 Required: 1. Assuming the bonds are convertible into 404,000 common shares, journalize the conversion on January 1, 2024, when the market value per common share was $10.25. 2. How will the conversion of bonds into common shares affect the elements of the balance sheet (assets, liabilities, equity)?
- The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1,2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securitiesthat is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be helduntil their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costingP29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, andtreasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bondretirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds payable…The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1,2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securitiesthat is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be helduntil their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costingP29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, andtreasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bondretirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds payable…The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1, 2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securities that is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be held until their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costing P29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, and treasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bond retirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds…
- A company received cash proceeds of 206,948 on a bond issue with a par value of 200,000. the difference between par value and issue price for this bond is recorded as a ?The entity received P4,500,000 cash from the issuance of its 9%, 10-year P5,000,000 par value preference shares. How much is the cost of the preference shares using the following methods? 1. Yield-to-maturity formula 2. Interpolation method using multiplies of 1%What is the correct choice? A bond issue of $50,000 with a carrying value of $49,000 is converted into $10 par value common stock at the rate of fifty shares for each $1,000 bond. The entry to be recorded on the conversion of bonds is: a. Bonds Payable 50,000 Loss on Retirement of Bonds 1,000 Unamortised Bond Discount 1,000 Common Stock 51,000 b. Bonds Payable 50,000 Common Stock 25,000 Additional Paid-In Capital 25,000 c. Bonds Payable 50,000 Common Stock 25,000 Additional Paid-In Capital 24,000 Unamortised Bond Discount 1,000 d. Bonds Payable 49,000…
- Crane Limited had $2.39 million of bonds payable outstanding and the unamortized premium for these bonds amounted to $44,600. Each $1,000 bond was convertible into 20 preferred shares. All bonds were then converted into preferred shares. The Contributed Surplus - Conversion Rights account had a balance of $21,500. Assume that the company follows IFRS. a. Assuming that the book value method was used, what entry would be made? Account Titles and Explanation Debit Credit b. Assume that Crane Ltd. offers $9,000 to induce early conversion. What journal entry would be made? Account Titles and Explanation Debit CreditOn 1 July 2022, SFU Co issued a convertible bond at par value of $20 million and has recordedit as a non-current liability. The bond is redeemable for cash on 30 June 2024 at par. Bondholderscan however, opt for the conversion in the form of a fixed number of shares. Interest on the bondis payable at a rate of 4% a year in arrears. The interest paid in the year has been presented asfinance cost. The interest rate on similar debt without a conversion option is 10%, with a presentvalue of $17,91 million at 1 July 2022. Discuss how the convertible bonds should be accounted for during the 2023 financialperiod. Please also show the calculations for my understandingOn December 31, 2021, Glimmer Company had outstanding P3,000,000 8% convertible bonds that mature on December 31, 2023. Interest is payable annually every December 31 and each P1,000 bond is convertible into 30 ordinary shares with a P20 par value per share. The unamortized discount was P200,000 and the equity component when the bonds were sold was P700,000. On the same date, 1,200 bonds were converted when the fair value of Glimmer’s share was P40. What amount of share premium should Glimmer recognize as a result of the conversion?