Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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Chapter 19.4, Problem 8TP
Summary Introduction
To determine: The difference betweenan unsecured and a secured bond.
Introduction:
Bond refers to a debt instrument which has a longer period for maturity and a fixed interest rate. Bonds are issued at that time when an entity needs a huge amount of fund.
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On July 1, 2021, after recording interest and amortization, BLUE Company converted ₱5,000,000 of its 12% convertible bonds into 50,000 shares of ₱10 par value ordinary share. On the conversion date, the carrying amount of the bonds was ₱6,000,000, the market value of the bonds was ₱6,500,000, and BLUE's ordinary shares were publicly trading at ₱150 per share. BLUE incurred ₱200,000 in connection with the conversion. What amount of additional share premium should BLUE record as a result of the conversion?
a. ₱ 6,000,000
b. ₱ 5,800,000
c. ₱ 5,300,000
d. ₱ 5,500,000
Identify different types of debt instruments and debt securities. Explain each.
Identify and explain any THREE capital market securities withappropriate examples?
Chapter 19 Solutions
Understanding Business
Ch. 19.2 - Prob. 1TPCh. 19.2 - Prob. 2TPCh. 19.2 - Prob. 3TPCh. 19.3 - Prob. 19.3AQCh. 19.3 - Prob. 4TPCh. 19.3 - Prob. 5TPCh. 19.4 - Prob. 6TPCh. 19.4 - Prob. 7TPCh. 19.4 - Prob. 8TPCh. 19.4 - Prob. 9TP
Ch. 19.5 - Prob. 1MEDCh. 19.5 - Prob. 10TPCh. 19.5 - Prob. 11TPCh. 19.5 - Prob. 12TPCh. 19.8 - Prob. 13TPCh. 19.8 - Prob. 14TPCh. 19.8 - Prob. 15TPCh. 19.8 - Prob. 16TPCh. 19.9 - Prob. 19.9AQCh. 19.9 - Prob. 19.9BQCh. 19.9 - Prob. 17TPCh. 19.9 - Prob. 18TPCh. 19.9 - Prob. 19TPCh. 19 - Prob. 1CECh. 19 - Prob. 2CECh. 19 - Prob. 3CECh. 19 - Prob. 4CECh. 19 - Prob. 1CTCh. 19 - Prob. 2CTCh. 19 - Prob. 3CTCh. 19 - Prob. 4CTCh. 19 - Prob. 5CTCh. 19 - Prob. 1DCSCh. 19 - Prob. 3DCSCh. 19 - Prob. 1VCCh. 19 - Prob. 2VCCh. 19 - Prob. 3VC
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