Homework Help is Here – Start Your Trial Now!
Business
Accounting
Kingbird Inc. issued $2,100,000 of convertible 10- year bonds on july 1,2020. The bonds provide for 12% interest payable semiannually on January 1 and july 1. The discount in connection with the issues was $51,600, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 9 shares of Kingbird Inc's $100 par value common stock for each $1000 of bonds. On August (1,2021,$210,000 of bonds were returned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization and interest in connection with the bonds as of the following dates. (a) August 1,2020. (Assume the book value method is used). (b) August 31, 2021. (c) December 31,2021, including closing entries for the end of year.

Kingbird Inc. issued $2,100,000 of convertible 10- year bonds on july 1,2020. The bonds provide for 12% interest payable semiannually on January 1 and july 1. The discount in connection with the issues was $51,600, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 9 shares of Kingbird Inc's $100 par value common stock for each $1000 of bonds. On August (1,2021,$210,000 of bonds were returned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization and interest in connection with the bonds as of the following dates. (a) August 1,2020. (Assume the book value method is used). (b) August 31, 2021. (c) December 31,2021, including closing entries for the end of year.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 9P
See similar textbooks
icon
Related questions
Question
Please Solve In 20mins I will Thumbs-up promise
Kingbird Inc. issued $2,100,000 of convertible 10- year bonds on july 1,2020. The bonds provide for 12% interest payable semiannually on January 1 and july 1. The discount in connection with the issues was $51,600, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 9 shares of Kingbird Inc's $100 par value common stock for each $1000 of bonds. On August (1,2021,$210,000 of bonds were returned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization and interest in connection with the bonds as of the following dates. (a) August 1,2020. ( Assume the book value method is used). (b) August 31, 2021. (c) December 31,2021, including closing entries for the end of year.
Transcribed Image Text:Kingbird Inc. issued $2,100,000 of convertible 10- year bonds on july 1,2020. The bonds provide for 12% interest payable semiannually on January 1 and july 1. The discount in connection with the issues was $51,600, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 9 shares of Kingbird Inc's $100 par value common stock for each $1000 of bonds. On August (1,2021,$210,000 of bonds were returned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization and interest in connection with the bonds as of the following dates. (a) August 1,2020. ( Assume the book value method is used). (b) August 31, 2021. (c) December 31,2021, including closing entries for the end of year.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost of Credit
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
SEE MORE TEXTBOOKS