Four years after issue, debentures with a face value of $1,000,000 and book value of $960,000 are tendered for conversion into 80,000 shares of common stock immediately after an interest payment date. At that time, the market price of the debentures is 104, and the common stock is selling at $14 per share (par value $10). The company records the conversion as follows. Bonds Payable 1,000,000   00Discount on Bonds Payable   40,000 00Common Stock   800,000 00Paid-in Capital in Excess of Par—Common Stock   160,000 Discuss the propriety of this accounting treatment.

Q: On January 1,2020, V Co. issued 100 share options to each of its 15 executive officers. The options…

A: Compensation expense = Number of employees × Number of options granted × Fair value ×Expired…

Q: On July 1, 2019, when its $1 par value common stock was selling for $66 per share, Kingbird Corp.…

A: Particulars Debit Credit Cash a/c               Dr $26,394,000           To 6%…

Q: Four years after issue, debentures with a face value of$1,000,000 and book value of $960,000 are…

A: Discuss the propriety of the preceding accounting treatment. The method employed by the corporation…

Q: On January 1, 2021, Kat Company has decided to raise additional capital by issuing P5,000,000 face…

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Q: During the year, Fabi Corporation issued 10,000 ordinary shares with P100 par value and 20,000…

A: Equity: It is the amount shareholder invested in the company. This is the difference between total…

Q: on June 30 and December 31. Each $1,000 debenture can be converted into 4 common shares of Cullumber…

A: Journal entries refer to the process of collecting and recording all the transactions of a company…

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…

Q: On January 1, 2020, when the fair value of its common shares was $85 per share, Cullumber Corp.…

A: 1. Journal entry for original issuance of convertible debentures   Debit credit Cash Dr…

Q: On January 1, 2023, Legis Company issued 10-year, P200,000 face value, 6% bonds at par (payable…

A: Basic EPS is a tool used to measure the profit of a company in per share basis. Again, Diluted EPS…

Q: On January 1, 2023, Legis Company issued 10-year, P200,000 face value, 6% bonds at par (payable…

A: NOTE- Since you have posted a question with multiple sub-parts, we will solve the sub-parts asked by…

Q: On January 1,2020, V Co. issued 100 share options to each of its 15 executive officers. The options…

A: Employee stock option plan is a type of compensation plan that is offered to managerial personnel,…

Q: On January 1, 2021, Starlight Company converted $150,000 bonds into 90,000 shares of $1 par value…

A: The bonds are the financial instruments used by the business to raise money from the investors of…

Q: On 1/5/2021, Al-Saada Company obtained approval from the Securities Commission giving it the right…

A:

Q: lue of each stock purchase

A: Answer b. $489,250             Cash recd = 103% X 500 Nos X $1,000 = $515,000…

Q: On January 1, 2020, when the fair value of its common shares was $80 per share, Pharoah Corp. issued…

A: Conversion of Bonds It is the method  of converting  a bond into shares. It  is dependent on…

Q: Four years after issue, debentures with a face value of $1,000,000 and book value of $960,000 are…

A:

Q: Prepare the journal entry to record the original issuance of the convertible debentures. 2. Prepare…

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Q: 1: The following accounts appear in the trial balance of DAVAO EAGLE Corporation as of December 31,…

A: 13. Authorized shares are the maximum number of shares a company is allowed to issue to shareholders…

Q: On January 1, 2020, Oriole Corporation issued $6 million of 10-year, 7% convertible debentures at…

A: On 01.01.2020, Oriole corporation issued convertible debentures 10 year, 7% convertible debentures =…

Q: Flint Corporation has outstanding 1,900 $1,000 bonds, each convertible into 70 shares of $10 par…

A: Bonds are a form of loan or debt being taken by the business. Bonds can be convertible or non…

Q: amount credited to share premium from ordinary shares?

A: Total amount of issue P3,000,000 Less Ordinary shares at par value (25,000 shares @P50)…

Q: On January 1, 2020, Gottlieb Corporation issued $3,860,000 of 10-year, 8% convertible debentures at…

A: When the bonds are issued at a price more than the face value, they are said to be issued at a…

Q: On January 1, 2021, Kat Company has decided to raise additional capital by issuing P5,000,000 face…

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Q: Mae Jong Corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of…

A: Bonds: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and…

Q: On January 1, 2020, Crane Corporation issued $8 million of 10-year, 7% convertible debentures at…

A: Convertible bonds are defined as the bonds that the holder or receiver can convert these bonds into…

Q: On August 1, 2019, Kobe Corporation received subscription for 7,000 shares of Ordinary Share…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: On January 1, 2020, Crane Corporation issued $8 million of 10-year,7% convertible debentures at 106.…

A: Bonds payable is a liability account that contains vthe amount owned to bond holders by the issuers.

Q: Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par…

A:

Q: On March 1, 2020, Seokjin Corporation received subscription for 1,600 Preference Shares with P 300…

A: No. of shares available for subscription = Total authorized to issue - Preference Shares…

Q: On January 1, the company issued $2.5 million of six-year, zero-interest-bearing notes along with…

A: On 01.01, Company issued 6 year, 0% Notes = $2.5 million Along with Warrants to buy common shares =…

Q: Hawk would record the following journal entry at the time of conversion:

A: Journal entries refers to the official book of a company which is used to record the day to day…

Q: On January 1, 2020, Shredder Company Issued its 10%, 4-year convertible debt instrument with a face…

A: Working note: Computation of equity company of compound instrument:

Q: On January 1, 2020, Riverbed Corporation issued $3,600,000 of 10-year, 8% convertible debentures at…

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Q: The ABC Corporation received subscription for 9,000 ordinary shares at P40/share, where P35 is the…

A: Here discuss about the details of the details of the receivable from the highest bidder which are…

Q: Nolan Corporation has outstanding convertible bonds with a face value of $15,000 and a current book…

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Q: n January 1, 2015, when its $30 par value common stock was selling for $80 per share, a corporation…

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Q: On July 1, 2019, when its $1 par value common stock was selling for $66 per share, Marin Corp,…

A: Date Account Titles and Explanation Debit Credit July 1, 2019 Cash $ 27,348,000…

Q: On January 1, 2020, Gottlieb Corporation issued $4,000,000 of 10-year, 8% convertible debentures at…

A: Introduction Debenture is a debt capital. Usually the return from debenture is interest and this…

Q: On January 1,2020, V Co. issued 100 share options to each of its 15 executive officers. The options…

A: Compensation Expense means all expenses and costs associated with compensation and benefits provided…

Q: Anthem Inc. issues 200,000 shares of stock with a par value of $0.11 for $160 per share. Three years…

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Q: On January 1, 2023, Legis Company issued 10-year, P200,000 face value, 6% bonds at par (payable…

A: Basic EPS is a tool used to measure the profit of a company in per share basis. Again, Diluted EPS…

Q: Jungkook Corporation was authorized to issue 10,000 preference shares ofP200 par value and 100,000…

A: Formula: Share premium = Issued price - Par value

Q: n January 1, 2020, Shredder Company Issued its 10%, 4-year convertible debt instrument with a face…

A: solution : This is a compound instrument We need to bifurcate it into financial liability and equity…

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Q: How much is the share options outstanding as of the 2nd year in the exercise period assuming out of…

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Q: An entity issued 1 500 debentures with face value of R20 000 each. The coupon rate on the debentures…

A: Interest  to the investor  will be paid on face value.

Q: Four years after issue, debentures with a face value of $1,000,000 and book value of $960,000 are…

A:

Q: Four years after issue, debentures with a face value of $1,000,000 and book value of $960,000 are…

A:

Q: At the beginning of the year, UNIVERSE Company decided to raise additional capital by issuing 8,000…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…