On January 1, 20x1, Julius Company issued a three-year, 5,000 convertible bonds at face value of P1,000 per bond. Interest is to be paid annually in arrears at the stated coupon rate of 6%. Each bond is convertible, at the holder’s option, into 200, P2 par value ordinary shares at any time up to maturity. On the date of issuance, the prevailing market interest rate for similar debt without conversion privilege was 9%. On the same date, the market price of one (1) ordinary share was P3. The bonds were converted on December 31, 20x2. REQUIRED: Compute the following: The liability component of the convertible debt Interest expense for the year ended December 31, 20x2 Share premium from issuance of ordinary shares

Q: On December 1, Y4, Boston Corp. issued $4,600,000 (par value), 12%, 5-year convertible bonds for…

A:

Q: Nero Solutions Co. issued an $800,000, 6%, three-year bond for $806,000. The bond pays interest…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: At the beginning of current year, Jackfrost Company issued 5,000 convertible bonds payable. The…

A: Compound Financial Instrument is an instrument with some option or warrant attached to it. It has…

Q: On January 1, 20x1, Julius Company issued a three-year, 5,000 convertible bonds at face value of…

A: IFRS 9 "Financial instruments" deals with accounting and measurement of a financial asset or a…

Q: On January 1, 2020, Trader Company issued its 8%, 4 year convertible debt instrument with a face…

A: Annual Interest = Face value of debt instrument  x rate of interest x no. of months/12 = P6,000,000…

Q: @ 11%  @12%                                 PV of a single payment of 1 for 5 periods…

A: a bond represents a loan given to a borrower (govt or corporate) by an investor - it is a fixed…

Q: On January 1, 2017, Sydney Inc. issued P 5,000,000 face value, 5-year bonds at 109. Each P1,000 bond…

A: Compound financial instruments are instruments that have both debt and equity components. Both the…

Q: Kingbird Inc. issued $2,100,000 of convertible 10-year bonds on july 1,2020. The bonds provide for…

A: a. % of bond converted = $210,000/$2,100,000 = .10 or 10% Period of Amortization = 10 x 12 = 120…

Q: At the beginning of the current year, Moses Company issued P5,000,000 face amount, 5-year bonds at…

A: Solution: Fair value of bond without warrants = Present value of interest + Present value of…

Q: Faith Company issued 5500 convertible bonds on January 1, 2019. The bonds have a three-year term and…

A: As Given in the question Faith Company provided 5,000 convertible notes due on January 1, 2019. The…

Q: At the beginning of current year, Sandy Company issued 5,000 convertible bonds payable. The bonds…

A: Convertible bonds are fixed-income security or debt that earns a fixed rate of interest & can be…

Q: On January 1, 2020, Trader Company issued its 8%, 4 year convertible debt instrument with a face…

A: Annual Interest = Face value of debt instrument  x rate of interest x no. of months/12 = P6,000,000…

Q: At the beginning of current year, Fence Company issued 12% P5,000,000 nonconvertible bonds at 103…

A: Sometimes share warrants are issued along with bonds to lure the investors. These share warrants are…

Q: On January 1 , 2021, Gray Co. issued its 10%, 4-year convertible debt instrument with a face amount…

A: Answer -  Calculation of balance of the unamortized premium on debt instrument as of Dec. 31, 2021 -…

Q: ABC Company issued a 3-year,12%, 2,000 of P 1,000 face value bonds with warrants at 98 on January 1,…

A: Present value of the bonds = Present value of principal + Present value of interest payments = face…

Q: On December 31, 2016, ABC Corp. issues $50,000,000 of 5%, 25-year, convertible bonds for total…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On January 2, 2022, the Peace Company issued P2,000,000 of 9% convertible bonds at par. The bonds…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: On January 1, 2021, Silay Company issued 2,000 convertible bonds. The bonds have a 3 year term and…

A: Carrying amount of the bond states the net value among the face value of the bond plus or in…

Q: Young company issued 5,000 convertible bonds at the beginning of the current year.  The bonds have a…

A: The bonds were not converted and instead, the entity paid off the convertible bondholders at…

Q: On January 1, 2020, James Bond Co. issued ₱4,000,000 of 12% bonds payable maturing in 5 years. The…

A: Share warrants are like options which give holder the right, but not an obligation to buy the shares…

Q: On December 31, 2019, Claudine Company issued 5,000 of 8% 10-year P1,000 face value bonds with…

A: Bonds-:A Bond is a method/instrument of indebtedness of the issuer of the bond to the owner. The…

Q: On 1 November 20X4, XBL Communications Ltd. issued a convertible bond that was convertible in 12…

A: Convertible Bond: Unlike other types of corporate debt securities, convertible bonds pay interest…

Q: On December 31, 2022, For Company issued P6,000,000 of 12% bonds payable maturing in five years. The…

A:

Q: per bond, at 105. Eá An entity issued 5,000 10-year bonds, face amount pond is accompanied by one…

A: Solution Given Issue price 105 Coupon rate on bond 10% Market rate of similar bond…

Q: On January 1, 20x2, Gelato Company issued convertible bonds with a face amount of P5,000,000 for…

A:

Q: On December 31, 2021, This Company issued P5,000,000 face value, 5-year bonds at 109. Each P1,000…

A: Given data, Face value of bonds=P5,000,000 Interest rate on bonds =11% prevailing market rate of…

Q: ABC Company issued a 3-year, 12%, 2,000 of P 1,000 face value bonds with warrants at 98 on January…

A: Present value of the bonds = Present value of principal + Present value of interest payments = face…

Q: On January 1 , 2021, Gray Co. issued its 10%, 4-year convertible debt instrument with a face amount…

A: Above question is based on Compounded Financial Instrument. In these type of instrument, two…

Q: V Company issued a 5-year, P5,000,000 face value bonds at 109 on December 31, 2020. Each P5,000 bond…

A: Share Premium = P5,620,000   Calculation:   Particulars Amount Amount Cash (5,000,000 / 1,000…

Q: On December 31, 2006, Moses Company issued P5,000,000 face value, 5-year bonds at 109.  Each P1,000…

A: Given data, Face value of bonds=P5,000,000 Interest rate on bonds =11% prevailing market rate of…

Q: The date is January 1, 2018. Nomi Corporation issued 4,000 five-year bonds of 10% P1,000 face value,…

A: Issued  value of bonds = 4000 having  face value  = P1000 Number of bonds = 4000/1000 =4 bonds

Q: On January 1 , 2021, NAGAGA COmpany issued 3-year, 4,000 convertible bonds at face value of P1,000…

A: When a discounted bond is converted, the amount of the bond's discount must be amortized to interest…

Q: On January 1, 2020, Trader Company issued its 8%, 4 year convertible debt instrument with a face…

A: Annual Interest = Face value of debt instrument  x rate of interest x no. of months/12 = P6,000,000…

Q: Uberita Company issued 5,000 convertible bonds at the beginning of the current year. The bonds had a…

A: Date Transaction Debit Credit Jan-01 Cash 5000000     6% Convertible Bonds Payable   4515000…

Q: Each P1,000 bond was issued with 20 detachable share warrants, each of which entitled the bondholder…

A: solution : the issued instrument is a compound financial instrument We shall identify the financial…

Q: On December 30, year 1, Fort, Inc. issued 1,000 of its 8%, ten-year, P1,000 face value bonds with…

A: The question is related to calculation of amount of bonds payableto be reported as on December 31st…

Q: to be paid annually in arrears at the stated coupon rate of 6%. Each bond is convertible, at the…

A: Given    Time  to maturity              =3 years   No. of  convertible bonds   = 400    Face value…

Q: ABC Company issued a 3-year,12%, 2,000 of P 1,000 face value bonds with warrants at 98 on January 1,…

A: Present value of the bonds = Present value of principal + Present value of interest payments = face…

Q: At the beginning of current year, Uranus Company issued P5,000,000 face amount, 5-year bond at 109.…

A: At beginning of current year, Uranus company issued 5 years bond = P5000000 of face value. Issued…

Q: Kingbird Inc. issued $2,100,000 of convertible 10- year bonds on july 1,2020. The bonds provide for…

A: In journal transactions are recorded chronologically and information regarded financial transaction…

Q: On December 31, 2019, OLGA Inc. sold convertible bonds to Nuttin Corp. for $38,375,000. The bonds…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

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, 2021, MANGO Corp. issues $100 million of convertible bonds at par value. The bonds…

A:

Q: Volker Inc. issued $2,500,000 of convertible 10-year bonds on July 1, 2020. The bonds provide for…

A: a) Prepare the journal entries as on August 1, 2021.

Q: Prepare the journal entries to record the conversion, amortization, and interest in connection with…

A:

Q: On January 1, 2016, CRAZIER Corp. issued a 10% convertible bonds with a face value of P4M maturing…

A: The convertible bond can be converted into equity shares but it is not equity shares until it is…