On July 1, 2020, Brimstone Company issued 5,000 P1,000 bonds with share warrants at its fair value of 115. The bonds carried an 11% interest payable every June 30 for five years. Each bond carried share warrants to purchase ten ordinary shares with a par value of P50 for P65. The effective rate of interest of the bonds ex-warrants is 8%. Sixty percent of the share warrants were exercised during 2021. note: Round off present value factors to four decimal places.  question: 1. How much is the interest expense during 2021?

Q: On January 1, 2019, Maeve Company issued P6,000,000 of 12% bonds payable maturing in five years. The…

A: Market price of Bonds Payable P56,00,000 Market price of share warrants  P8,00,000 Total market…

Q: rane Corporation issued 4,400, five year, 4% bonds at 104 on January 1, 2020. Interest is paid…

A: The accounting for the convertible bond requires recording its Liability portion and equity portion…

Q: Sarasota Inc. issued $4,170,000 of 10%, 10-year convertible bonds on June 1, 2020, at 97 plus…

A: Solution: When a bond is sold at a discount, the amount of the bond discount must be amortized to…

Q: On January 1,2020, ABC Company issued P 10,000,000 convertible bonds with a stated rate of 12% at…

A: Step 1 is for understanding initial Entries and Understanding the flow if you want Direct Answer…

Q: On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Flounder…

A: Journal entries are an act of recording transactions consisting of a debit and a credit side.

Q: On January 1, 2021, Happiness-R-Us Inc. raised $5.1 million by issuing $4.6 million of 4%,…

A: Working Notes :-                                                                        Amount $…

Q: On January 1, 2022, Iced Latte Corporation issued 5,000 10-year bonds of 12% P1,000 face value, each…

A: The amount allocated to the warrants-equity component refers to the value of equity which is derived…

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: On August 1, 2021, National Corporation issued $200,000 of 8% bonds at 99. The bonds mature in 10…

A: 1.

Q: Sunland Inc. issued $4,320,000 of 9%, 10-year convertible bonds on June 1, 2020, at 99 plus accrued…

A: Working Notes: Computation of discount on bonds payable: Particulars Amount (S) Semiannual…

Q: How much is the credit to share premium when the warrants were exercised?

A: As per our protocol we provide solution to the one question only but you have asked two questions…

Q: Sandhill Co. issued $4,100,000 of 12%, 5-year convertible bonds on December 1, 2020 for $4,122,360…

A: When the bonds are issued at premium, the amortisation premium needs to be adjusted against the…

Q: What is the carrying amount of the bonds as of December 31, 2022?

A: Compound financial Instrument: A Compound Financial Instrument is an instrument which exhibits the…

Q: On December 31, 2021, Glimmer Company had outstanding P3,000,000 8% convertible bonds that mature on…

A: Requirement: conversion of bond into ordinary shares and asked to calculate share premium as a…

Q: Prepare all the necessary journal entries assuming the share warrants are fully exercised.

A: Issue price of bonds with warrants (5,000,000 x 103) =  515,000,000 Market value of bonds without…

Q: On July 1, 2020, an interest payment date, $200,000 of Pride Co. bonds were converted into 12,000…

A: When the bonds were converted into equity shares then the balance in Unamortized premium on bonds…

Q: urnal entry for April 1, 2021 bond conversion?

A:

Q: On April 1, 2020, Waterway Company sold  17,100 of its  12%,  15-year, $1,000 face value bonds at…

A: Working Notes: 1. Calculate the discount on bonds payable as shown below:Discount on bonds payable =…

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: n January 1,2020, ABC Company issued P 10,000,000 convertible bonds with a stated rate of 12% at…

A: Bonds can be converted to the number of shares upon the expiration of bond. Or bonds may be retired…

Q: Sandhill Co. issued $4,100,000 of 12%, 5-year convertible bonds on December 1, 2020 for $4,122,360…

A: Convertible bonds are a type of bonds issued by the organization, where at the time of maturity of…

Q: On June 30, 2021, Marc Industries had outstanding $800 million of 8% convertible bonds that mature…

A: From the question we get the following data: Face value of the bond converted = $800 million * ½ =…

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 January 1, 2021, a company issued 1,000 of its 8% 5-year P5,000 convertible bonds at P200,000…

A: The carrying amount of a bond is the amount that is payable to the holder of the bond by the issuer…

Q: On January 1, 2020, Ribond issued a 5-year 12%, P10,000,000 with detachable share warrants. Each…

A: On a firm's balance sheet, equity represents the investors' stake in the company. Equity is…

Q: On December 31, 2022, Two Company issued 5,000 of its 12%, 10-year P1,000 face value bonds with…

A: Here discuss about the details of issuance of Bod with detachable warrant and its calculation which…

Q: On January 1, 2019, $2,000,000 of five-year, 6% convertible bonds were sold by Company Z for…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: How much is the Share Premium arising from the exercise of share warrants?

A: As per our protocol we provide solution to the one question only but you have asked two questions…

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 January 1, 2022, A company issued 1,000 of its January 1, 2017, 8%, 10 year, P1,000 face value…

A:

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: On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Ivanhoe Corp.…

A: Convertible Debentures: A debenture holder is a creditor of the company.Any debenture is a long term…

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

A: solution : given face value of bond          =2000 *1000…

Q: On August 1, 2021, Limbaugh Communications issued $30 million of 10% nonconvertible bonds at 104.…

A: a) Step 1: Prepare the journal entry to record the issuance of the bonds by Limbaugh

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: with a face value of P1,000 per bond (total proceeds received from issuance of the bonds are…

A: Given as,   PV of 1 for 4 periods PV of Ordinary Annuity for 4 periods 6% 0.79209…

Q: Larkspur Inc. issued $3,780,000 of 10%, 10-year convertible bonds on June 1, 2020, at 99 plus…

A:

Q: On July 1, 2020, Berry Company issued 5,000 P1,000 bonds with share warrants at its fair value of…

A: bonds issued with share warrant here at the time of issue of the bonds by the company it will also…

Q: Marigold Corporation issued 2,100, ten year, 7% bonds for 104 on January 1, 2020. Interest is paid…

A: Journal entries refer to the process of systematic documentation of the financial transactions of a…

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: ember 31. The bonds are convertible into 40,000 of the company’s ordinary shares with par value of…

A: Given as, The total number of 1000 bonds are convertible in 40000 in shares of $100 each.

Q: On January 1,2020, ABC Company issued P 10,000,000 convertible bonds with a stated rate of 12% at…

A: Working note: Computation of equity portion of the bond: Computation of carrying amount of bond…

Q: On May 1, 2021, Marly Co. issued $2,500,000 of 7% bonds at 103, which are due on April 30, 2031.…

A: 1. Collection from issue of Bonds Total Bonds Issued are $25,000 Bonds Face  Value = $100 per bonds…

Q: On January 1, 2020, Booker Corp. issued $9 million of ten year bonds at 100.5 (Booker amortizes any…

A: The bonds issued are recorded as bonds payable and these represent the long-term liabilities. When a…

Q: Oriole Inc. issued $6 million of 10-year, 10% convertible bonds on June 1, 2020, at 99 plus accrued…

A: SOLUTION  A JOURNAL IS AN COMPANY'S OFFICIAL BOOK IN WHICH ALL BUSINESS TRANSACTION ARE RECORDED IN…

Q: On January 1, 2022, Iced Latte Corporation issued 5,000 10-year bonds of 12% P1,000 face value, each…

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: