Subject - account Please help me. Thankyou. Computalog Inc. showed the following on its December 31, 2023, balance sheet:Bonds payable, convertible $4,080,000Less: Unamortized discountRequired:1. Assuming the bonds are convertible into 408,000 common shares, journalize the conversion on January 1, 2024, when the market.value per common share was $10.25.View transaction listJournal entry worksheet114,688 $4,065,312Record the conversion of bonds into shares.Note: Enter debits before credits.DateJanuary 01, 2024 Bonds payableRecord entryGeneral JournalDiscount on bonds payableCommon sharesClear entryDebit4,080,000Credit14,6884,065,312View general journal 2. How will the conversion of bonds into common shares affect the elements of the balance sheet (assets, liabilities, equity)?Affect on BalancesheetAssetsTotal liabilitiesEquitywill not changedecrease byincrease byAmount$$4,065,312$ 4,065,3120

1. Journal EntryDateAccount title and explanationDebit($)Credit($)Bonds…

Answered: Required: 1. Assuming the bonds are…

Required: 1. Assuming the bonds are convertible into 408,000 common shares, journalize the conversion on January 1, 2024, when the market value per common share was $10.25.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 15MC: Stockholders equity consists of which of the following? A. bonds payable B. retained earnings and...

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Question

Subject - account

Please help me.

Thankyou.

Computalog Inc. showed the following on its December 31, 2023, balance sheet:
Bonds payable, convertible $4,080,000
Less: Unamortized discount
Required:
1. Assuming the bonds are convertible into 408,000 common shares, journalize the conversion on January 1, 2024, when the market.
value per common share was $10.25.
View transaction list
Journal entry worksheet
1
14,688 $4,065,312
Record the conversion of bonds into shares.
Note: Enter debits before credits.
Date
January 01, 2024 Bonds payable
Record entry
General Journal
Discount on bonds payable
Common shares
Clear entry
Debit
4,080,000
Credit
14,688
4,065,312
View general journal

2. How will the conversion of bonds into common shares affect the elements of the balance sheet (assets, liabilities, equity)?
Affect on Balance
sheet
Assets
Total liabilities
Equity
will not change
decrease by
increase by
Amount
$
$
4,065,312
$ 4,065,312
0

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