An entity has an outstanding bond payable amounting to P2,500,000 with accrued interest of P250,000. To settle this debt, the entity issued 1,000, P1,000 par value shares, currently selling at P2,250 per share. The bonds have a current fair value of P3,150,000. Determine the increase in the entity’s stockholders’ equity.

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A: All financial assets are initially measured at fair value plus or minus, in the case of a financial…

Q: Clover Company purchased P3,000,000 of bonds at par. The entity has elected the fair value model for…

A: Bonds purchase value = P3000000 Annual Interest = P120000 Fair value of bonds = P2823000

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Q: Show your solution in good accounting form. On July 1, 2021, after recording interest and…

A: Analysis:  Incase of conversion of convertible bonds into ordinary shares, share premium will be…

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Q: On December 31, 2019, after recording interest and amortization, Lyka Company converted P5,000,000…

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A:

Q: Gentiles Company is indebted to Israelites under a P1,000,000, 9% three-year bonds dated December…

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Q: On January 1, 2020, Royalty Company purchased 9% bonds with face amount of P6,000,000. The bonds…

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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: On January 1, 2019, ABC Company issued its P3,000,000, 8%, 5-year bonds that resulted in a bond…

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Q: ement: Prepare Journal Entries on June 1 and selling of warrants.

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Q: The following are two independent situations. 1.   Sandhill Corporation redeemed $130,500 face…

A: Journal entry is a recording of a financial transaction of a business with debit and credit columns…

Q: how much is the total impact to profit or loss as a result of the business model of ABC in holding…

A: The bond has been sold at 103. Hence it will be compared with the closing value to arrive at the…

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Q: s purchased 12% of the issue as an investment.   Required:

A: International Financial  Reporting Standards (IFRS) Under IFRS, unlike U.S GAAP the convertible debt…

Q: On May 1, 2018, Luzon Company issued P2,000,000, 5 year, 10% bonds for P2,300,00O. Each P1,000 bonds…

A: Share warrants are the rights attached with the issue of shares which provides the issuer of the…

Q: VICO Company had bonds payable with face amount of P5, 000, 000 and carrying amount of P4,800,000.…

A: Share premium is the amount over and above the par value received by the company. It is the…

Q: On December 31, 2021, Sunshine Company showed the following data with respect to its matured…

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