[Show your computation]Prepare the journal entry for each transaction of Splash Co. in year 2022 describedbelow:1. Splash Co. called its convertible debt in 2022. Assume the following related to thetransaction. The 11%, €10,000,000 par value bonds were converted into1,000,000 shares of €1 par value ordinary shares on July 1, 2022. The carryingamount of the debt on July 1 was €9,700,000. The Share Premium-ConversionEquity account had a balance of €200,000, and the company paid an additional€75,000 to the bondholders to induce conversion of all the bonds.2. The company issued to the shareholders 100,000 rights. Ten rights are needed tobuy one share at €32. The rights were void after 30 days. The market price of theshares at this time was €34 per share.3. The company sold to the public a €200,000, 10% bond issue at 104. The companyalso issued with each €100 bond one detachable share-purchase warrant, whichprovided for the purchase of ordinary shares at €30 per share. The net presentvalue of the bonds without the warrants was €192,000.4. All but 5,000 of the rights issued in point (2) were exercised in 30 days.5. The company acquired a 45% interest in Gaston Co. on December 31, 2021 for€945,000. During 2022, Gaston Inc. had net income of €600,000 and paid cashdividends of €150,000.

Given: The data is given as, Debit Cash 200,000 Credit Bond payable 200,000

epare the journal entry for each transaction of Splash Co. in year 2022 describe low: . Splash Co. called its convertible debt in 2022. Assume the following related to transaction. The 11%, €10,000,000 par value bonds were converted into 1,000,000 shares of €1 par value ordinary shares on July 1, 2022. The carryin, amount of the debt on July 1 was 69 700 000 The Share Premium-Conversi

epare the journal entry for each transaction of Splash Co. in year 2022 describe low: . Splash Co. called its convertible debt in 2022. Assume the following related to transaction. The 11%, €10,000,000 par value bonds were converted into 1,000,000 shares of €1 par value ordinary shares on July 1, 2022. The carryin, amount of the debt on July 1 was 69 700 000 The Share Premium-Conversi

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Bradford Company issued 12% bonds, dated January 1, with a face amount of $80 million on January 1, 2024 to Saxton-Bose Corporation. The bonds mature on December 31, 2033 (10 years). • For bonds of similar risk and maturity, the market yield is 14% • Interest is paid semiannually on June 30 and December 31. Required: 1. to 3. Prepare the journal entries to record the purchase of the bonds by Saxton-Bose on January 1, 2024, interest revenue on June 30, 2024 and interest revenue on December 31, 2024 (at the effective rate). Note: Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) View transaction list Journal entry worksheet
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Chandelier Company issued 4-year P5,000,000 face value of 14% convertible bonds at 106 on January 1,2020, maturing on January 1, 2025 and paying interest annually on December 31. It is reliably ascertained that the bonds would sell at P5,100,000 without the conversion feature with an effective yield of 12%. Each P1,000 bond is convertible into 10 shares of P100 par value share capital. What is the entry to record the issuance of bonds? Prepare other necessary journal entries relating to the problem
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B5.
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The Bradford Company issued 8% bonds, dated January 1, with a face amount of $80 million on January 1, 2024 to Saxton-Bose Corporation. The bonds mature on December 31, 2033 (10 years). For bonds of similar risk and maturity, the market yield is 10% Interest is paid semiannually on June 30 and December 31. Required: 1. to 3. Prepare the journal entries to record the purchase of the bonds by Saxton-Bose on January 1, 2024, interest revenue on June 30, 2024 and interest revenue on December 31, 2024 (at the effective rate). Note: Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
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