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%. * 10. Required: Provide entries on issuance and on 31 December 20X4, the fiscal year-end.

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%. * 10. Required: Provide entries on issuance and on 31 December 20X4, the fiscal year-end.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2PB: Charleston Inc. issued $200,000 bonds with a stated rate of 10%. The bonds had a 10-year maturity...

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