meryewavelbrary GA, December 31,20. eAungencorporation g\' Mal, r_barahonae Q CH
ID: 2556594 • Letter: M
Question
meryewavelbrary GA, December 31,20. eAungencorporation g' Mal, r_barahonae Q CHest bank or adva, BACK For each of the unrelated transactions descaribed belom, present the entries requred to record each transacbion 1. Blue Corp. issued $18,000,000 par value 9% convertible bonds at 9. f the bonds had not been converter the they would have been sold at 95 2. Kingbird Company issued $18, stock purchase warrant was issued with each $100 par value bond. Ad Company nsued $18,600,000 par value 9%bonds at 98 One detachable s time of issuance, the warrants were seling for $5 to the transaction. The 10%. $ 10,500,000 par value bonds were 1, there was $56,000 of unamortined discount applicable to the acor, Inc. caled its convertbe debt n 2017. Assume the following related ed into 1.050.000 shares of $1 par value common stock on July 1, 2017. On July , there was ssthe all the bonds. The company records the conversion using bonds, and the company paid an addtional $80,000 to the bondholders to induce conversion of the book value e method ted when amount is entered. Do not indent manually. If no entry is required, select "No Entry (Credit account sitles are automatically indented when amount is for the account titles and enter O for the amounts) Debit Credia No. Account Tiales and EExplanation / Answer
Journal Entry S. No. Particular Debit Credit a Cash($18600000*0.99) $18,414,000 Discount on issue of Bond Payable $186,000 Bond Payable $18,600,000 b Cash $18,414,000 Discount on issue of Bond Payable $1,116,000 Bond Payable $18,600,000 Paid in Capital Stock Warrant ($18600000/100*$5) $930,000 c. Debt Conversion Expense $80,000 Bond Payable $10,500,000 Bond Payable $56,000 Paid in Capital -Stock Warrant $1,050,000 Paid in Capital in excess of Par $9,394,000 Cash $80,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.