Problem 7-6 (IAA) Kareń Company showed the following accounts on December 31, 2020. 5,000,000 250,000 Bonds payable Premium on bonds payable Share capital – 250,000 shares authorized and 200,000 shares issued, P50 par Share premium - issuance Share premium- conversion privilege Retained earnings 10,000,000 2,000,000 500,000 2,500,000 The bonds are convertible into 10 shares of capital for every P1,000 bond. On December 31, 2020, the entire bond issue was converted and on this date, the market value of the share is 120 and the market value of the bonds is 103. The entity paid P200,000 as a result of the bond conversion. Required: Prepare journal entries for the conversion of the bonds on December 31, 2020.

Q: C. Utter Space Corp. had the following securities outstanding at the beginning of the current year:…

A: Basic Earnings Per Share = Net Income / Number of outstanding shares Diluted Earnings Per Share = (…

Q: Problem 8-6 (Reconstruction of Shown below and on the next page are account balances found in the…

A: calculation of above requirement are as follows

Q: On January 1, ABC Company has 120,000 outstanding ordinary shares. During the year, ABC reported net…

A: Earning per share means net amount per equity share which is derived from the earnings of the entity…

Q: Problem 2: (Paid-In Capital is also called Share Premium) Shown below are account balances found in…

A: Shareholder’s equity statement is the summary showing details for equities of the entity which…

Q: On January 1, ABC Company has 100,000 outstanding ordinary shares. During the year, ABC reported net…

A: Earnings per share indicate the profits per share of common stockholders. It can be calculated by…

Q: 2021 statement of financial position of

A: Share refers to the portion held by the shareholder from the total share capital. The holder of the…

Q: Question On December 31, 2019, VENUS Company had 450,000 shares of ordinary shares outstanding. On…

A: When all convertible securities are exercised, diluted EPS is used to assess the consistency of a…

Q: E15-16 Contributed Capital Adams Company's records provide the following information on December 31,…

A: Contributed capital is the total capital contributed by preferred stock and common stock. It does…

Q: 11. The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…

A:

Q: 31. Jones Company reported the following shareholders’ equity on January 1, 2020: • Share…

A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…

Q: QUESTION TWO IFA Corporations had Net Incorme of $780,000 and the following information for January…

A: In order to calculate the net number of shares that would have been issued due to exercise of stock…

Q: Problem 8-6 Shown below and on the next page are account balances found in the ledger of Humility…

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

Q: Question 1.) 10,000 non-par value share were issued at P4. The journal entry includes a credit of?…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Problem 7-4 On January 1, 2019, Martha Company had 6,000,000 authorized ordinary shares of P5 par,…

A: Solution Shareholder equity is the amount which is left after substracting from total assets to…

Q: Walking Bear Resources Inc. Equity Section of the Balance Sheet March 31, 2020 Contributed capital:…

A: Common stockholders are considered the real owner of the company. They have the voting right in the…

Q: Computing Diluted EPS: Convertible Bonds and Convertible Preferred Stock Jones Corporation's…

A: Given that,               Net Income  =  $ 1360000               Tax =  25%               Dividend…

Q: 2. Diluted earnings per share. On April 1, 2021, River Company issued P2,000,000 12% bonds at face…

A: Earnings per share are of two types  1. Basic Earnings per Share is calculated by dividing net…

Q: 3. Bernabe Company reported the following equity accounts in January 1, 2020: 129 Share Capital, P20…

A: Retired Shares: These are  the shares that are repurchased and canceled by the company  and don't…

Q: 12. The accounts were taken from the ledger of Abante Pinoy Corporation as of December 31,2019,: 18%…

A: Shareholders’ equity section: It consists of the following components: Contributed capital Earned…

Q: 8. DAE Parts Shop began business on January 1, 2022. The corporate charter authorized issuance of…

A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…

Q: Problem 7-8 Karen Company showed the following accounts on December 31, 2020. Bonds payable…

A:

Q: A. BBB Company authorized to issue 37,500 share capital with par value of P100 B. 40% of the…

A: The details are given by the company regarding share capital and issues  Required  a. How much is…

Q: Paltel Group has the following Earnings and Securities: Net income for 2020 $450,000 100,000…

A: Diluted Earning per share: It measures  adjusted net profits distributable to each share of total…

Q: Question 2 The equity accounts of Marvell Ltd. on January 1, 2020, were as follows. Share…

A: Treasury Stock: Repurchased shares of company's own  stock  are  called  treasury stock  and…

Q: When Marlou Corp. was formed on January 2020, the corporate charter provided for 100,000 share of…

A: The correct entry to record issue of shares will be: Account Titles and Explanation  Debit…

Q: Colors Company has 200,000 shares of ordinary share on January 1, 2012. On August 31, 2012, 9%…

A: Solution: Interest cost on bond for 2012= P2,000,000*9%*4/12 = P60,000 Saving in annual interest…

Q: 4. The Fernandez Corporation was incorporated on September 1, 2021 and was authorized to issue share…

A: Shareholder’s equity is the section in the balance sheet in which equities of the owner is included.…

Q: AA8 The adjusted trial balance of ZZZ Corp. on December 31, 2021 includes the following account…

A: Preference shareholders enjoy the preference of capital redemption in the event of liquidation of…

Q: Problem 3 In late 2022, the Nicklaus Corporation was formed. The corporate charter authorizes the…

A: Stock Holder Equity: It is the  part of the balance sheet that provide information about how value…

Q: 14. Caviar Company was organized on January 1, 2020 with 100,000 authorized shares of P100 par…

A: Treasury shares are shares repurchased or reacquired by the business from its shareholders. These…

Q: Problem 3 Party Company reported total assets of P1,050,000 and total liabilities of P680,000 in its…

A: Shareholders equity is defined as the net worth of the company which is determined by deducting the…

Q: Problem 7-5 Carr Company reported the following shareholders' equity on January 1, 2019. Preference…

A: Solution Notes- 1- Share premium = (90000+3500000) = 3590000. 2- Retirement of treasury shares:…

Q: QUESTION TWO IFA Corporations had Net Income of $780,000 and the following information for January…

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

Q: 13. The following accqunts 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…

Q: Problem 5-5 (PHILCPA Adapted) Carr Company reported the following shareholders' equity on January 1,…

A: Below is Carr Company Statement of Changes in Equity December 31, 2021 Explanation:…

Q: ded the following information at the Atla beginning of the current year: 12% convertible bonds…

A: Given that, Net income for the year = P9,500,000  Tax rate = 30%  Ordinary share outstanding at…

Q: 12) On April 1, 2021, ABC Co. issued at par $10,000 of 6% bonds convertible in total into 1,000…

A: Diluted earning per share is when we take into consideration the probable conversion  of convertible…

Q: 1. Villarente Company issued 5-year $200,000 face valuebonds at 95 on January 1, 2012. The stated…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Tania Company's stockholders' equity section of its December 31, 2019 balance sheet was as follows:…

A: The treasury shares includes the own shares of company that are repurchased from the shareholders.

Q: he following equity section of the balance sheet of CUTE Corporation as of December 31, 2021 Paid –…

A: Dividend will not paid to treasury shares

Q: Computing Diluted EPS: Convertible Bonds and Convertible Preferred Stock Jones Corporation's…

A: Given that  net income    $1870000 Dividend declared and paid = $3 per share  tax = 25%

Q: The shareholders’ equity section of THANOS Company revealed the following information on December…

A: The legal capital includes the ordinary share and preference shares issued and subscribed. It does…

Q: A partial list of the accounts and ending account balances taken from the post-closing trial balance…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Part A In late 2022, the Nicklaus Corporation was formed. The corporate charler authorizes the issae…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: (Note: This is a variation of E 19–17 modified to include convertible bonds).On December 31, 2017,…

A:

Q: Follow Up Question Pilsen Company issues 12% bonds with a face value of $10,000 and 600 shares of…

A: To arrange the funds, firm issues various securities like shares, preferred stock, bonds, debentures…

Q: Problem 21-3 (AICPA Adapted) Amaze Company reported the following information at year-end: Ordinary…

A: PROBLEM 21-3: 1. Basic earnings per share Preferred dividends = P30 per share Preferred dividends =…

Q: Compute basic EPS for 2020.   b) Compute diluted EPS for 2020.   c) Prepare the bottom of the…

A: a. Calculate basic EPS for 2020 as shown below: Basic EPS = (Net income - Preferred dividend)/No of…

Q: Problem #7 The accounts below appeared in the Dec. 31, 2020 trial balance of the Ceradoy…

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

Q: 13. The following accqunts appear in the trial balance of DAVAO EAGLE Corporation as of December 31,…

A: For preference share capital- Authorized number of shares 50000 shares subscribed shares 2000…

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like: