1. Determine the value to be assigned to the bonds and the warrants and prepare the journal entry to record the issuance of the convertible bonds. 2. Assume that 4,000 warrants are subsequently exercised on July 1, 2021. Prepare the journal entry for the issuance of the common stock.

Q: On January 1, 2019, Mayleen Company issued 5,000 convertible bonds with P1,000 face value per bond.…

A: Equity component = Issue price of the bonds - fair value of the bond without the conversion…

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: On April 1, 2019, Sarkar Sailboats sold 15,000 of its 11%, 15-year, R$1,000 face value bonds to…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: On July 1, 2021, an interest payment date, $148000 of Bramble Corp. bonds were converted into 2930…

A: Explanation: Value = Value of Bonds - Conversion Value - Unamortized Discount Value = $148000 -…

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 July 1, 2022, RED TV Company purchased 1,000 of the P1000 face value, 8% bonds for P910,000 plus…

A: It has been given that the bond is held for trading activities. Hence at year-end, the investment is…

Q: On July 1, 2020, Tuttle Company had bonds payable outstanding with a face value of $350,000 and a…

A: Journal entries refers to the systematic documentation of the financial transactions of a company in…

Q: On September 1, 2020, Splish Company sold at 104 (plus accrued interest) 5,760 of its 9%, 10-year,…

A: Record general journal for issuance of bonds as shown below:

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

A: 1.

Q: Presented below are three independent situations: a. IKJUN Co. purchased 12% bonds having a maturity…

A: a. Account title and explanation Debit Credit 12% Bonds A/c  $107,581   To Bank A/c…

Q: On July 1, 2019, Salem Corporation issued $3 million of 12% bonds payable in 10 years. The bonds pay…

A:

Q: On May 1, 2018, Luzon Company issued P2,000,000, 5 year, 10% bonds for P2,300,000. Each P1,000 bonds…

A: Share warrants means rights attached with the issue of bonds by which person has the right to…

Q: On January 1, 2019, Berlin Corporation issued $500,000 of 11.5% bonds due December 31, 2025, at 102.…

A: Bonds:  Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: On January 1, 2021, Nicks Company reported 10% bonds payable with carrying amount of P5,700,000. The…

A: The financial instruments can be recorded at fair or amortized value depending upon the accounting…

Q: Several years ago Brant, Inc., sold $950,000 in bonds to the public. Annual cash interest of 8…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: On April 1, 2017, Seminole Company sold 15,000 of its 11%, 15-year, $1,000 face value bonds at 97.…

A: “Hey, since there are multiple questions posted, we will answer first three questions If you want…

Q: On April 1, 2021, Western Communications, Inc., issued 12% bonds, dated March 1, 2021, with face…

A: Solution A journal is used to record the business transation in chronological order. It has two…

Q: On December 31, 2019, Armada Company issued 5,000,000 face amount, 5 year bonds at 109.  Each 1,000…

A: Share warrant: Share Warrant is a document which entitles  bearer of this document for  the shares…

Q: On January 1, 2018, Madison Products issued $40 million of 6%, 10-year convertible bonds at a net…

A:

Q: On August31,2021, DASHER Company issue dat 104 plus accrued interest, three thousand 10% bonds with…

A: Answer: The carrying value of a bond refers to the net amount between the bond’s face value plus any…

Q: On January 1, 2021, Malya Company issued 500, P1,000 face value 6%, 5-year term bonds and issued to…

A: Bonds are an instrument issued by the company on which interest is payable till maturity or…

Q: On December 31, 2020, Green Inc. issued of its 8%, 10-year, P1,000 face value bonds with detachable…

A: P 120,000 Explanation:

Q: What is the credit to share premium in 2019 from the issuance of the shares through the exercise of…

A:

Q: On January 1, 2021, Madison Products issued $70 million of 6%, 10-year convertible bonds at a net…

A: A bond is a borrowing security issued by a company ta raises funds from the market by making an…

Q: 1. Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworth’s…

A: Journal enteries on the issuance of Bonds for the organisation Western and stillworth organisation.

Q: On March 1, 2020, WHITE Corporation purchased bonds with face amount of P5,000,000. The entity paid…

A: When the objective of the entity is not to hold the financial asset till the maturity and the…

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, Hyde Corporation purchased bonds with a face value of $300,000 for $308,373.53.…

A: A journal entry is used to document any commercial transaction in the accounting records of a…

Q: On May 1, 2021, Duck Corporation issued $2,000,000 of 8% nonconvertible bonds at 104, which are due…

A: Isssue Price of Bonds ($2000000 * 104%) $20,80,000     Fair market value of bonds ($2000000 *…

Q: Garr Co. issued $6,000,000 of 12%, 5-year convertible bonds on December 1, 2018 for $6,025,480 plus…

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

Q: On January 2, 2019, Lindsay Corporation issued $800,000 of 8% convertible bonds at par. The bonds…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: On September 1, 2020, Sands Company sold at 104 (plus accrued interest) 4,000 of its 9%, 10-year,…

A: Workings: Calculation of face value of bond: = 4000 x 1000 = 4000000   Calculation of selling price…

Q: On September 1, 2020, Wildhorse Company sold 9,960 of its 9%, 15-year, $1,000 face value,…

A: The question is based on the concept of Financial Accounting.

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 September 1, 2020, Crane Company sold at 104 (plus accrued interest) 3,000 of its 9%, 10-year,…

A: A bond refers to a fixed income instrument that speaks to a credit made by a speculator to a…

Q: On July 1, 2021, an interest payment date, $150,000 of converted into 3,000 shares of Mack Co.…

A: Introduction:- The following basic information as follows under- On July 1, 2021, an interest…

Q: On January 1, 2018, OCEANIC Company purchased 12% bonds, having a maturity value of P800,000, for…

A: Date of Purchase of Bonds= 01-01-2018 Maturity Value= P800000 Purchase price= P860652 Transaction…

Q: Several years ago, Soriano Corporation sold bonds with a face value of $1,000,000 to the public at a…

A: The amount of interest expense, interest payment, and discount or premium amortization of a bond in…

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: What is the interest income for 2020? a. P280,000 b. P400,000 c.P248,080 d. P354,400 53. What is…

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, 2019, Mark Corporation purchased bonds with a face value of $500,000 for $475,413.60.…

A: Prepare a schedule of bond investment interest income and discount amortization:   Date Cash…

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: OI March 1, 2021, Remy Corporation issued $1,000,000 of 8% nonconvertible bonds at 104, which are…

A: Paid-in capital is the money a company has received from investors in return for issuing stock.…

Q: On January 1, 2019, Ventionary issued bonds with an estimated value of 10 years, $ 3,000,000 (face…

A: Compute diluted earnings per share for 2019:  Formula: net income after tax saving / total…

Q: s purchased 12% of the issue as an investment.   Required:

A: International Financial  Reporting Standards (IFRS) Under IFRS, unlike U.S GAAP the convertible debt…

Q: On May 1, 2018, Luzon Company issued P2,000,000, 5 year, 10% bonds for P2,300,00O. Each P1,000 bonds…

A: Share warrants are the rights attached with the issue of shares which provides the issuer of the…

Q: On July 1, 2018, bondholders converted bonds of Vebbz Corporation with a face value of $90,000 into…

A: The correct option is c i.e., Common Stock -] CR $81,000; Contributed Surplus - Conversion - CR…

Q: On January 1, 2021, Gless Textiles issued $12 million of 9%, 10-year convertible bonds at 101. The…

A: Journalize the given transactions in the books of Gless:

Q: During 2016, Royal Corporation issued at 105, two hundred of its 8%, P 1,000 bonds in ten years. One…

A: Bonds: Bonds are one of the tradeable security in the stock market that provides fixed rate of…