On June 30, 2024, Blair Industries had outstanding $94 million of 7% convertible bonds that mature on June 30, 2025. Interest is payable each year on June 30 and December 31. The bonds are convertible into 8 million shares of $10 par common stock. On June 30, 2024, the unamortized balance in the discount on bonds payable account was $4 million. On June 30, 2024, half the bonds were converted when Blair's common stock had a market price of $38 per share. When recording the conversion, Blair should credit paid-in capital-excess of par: Multiple Choice $7 million. $9 million. $5 million. $3 million.
Q: On February 1, 2024, Sanyal Motor Products issued 6% bonds, dated February 1, with a face amount of…
A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…
Q: Prepare Nash's December 31, 2025, adjusting entry.
A: Introduction of bonds premium amortization:The amortization of an premium on bonds refers to the…
Q: Star Co. has bonds with a face value of $200 per share, a term of 3 years, and an interest rate of…
A: JOURNAL ENTRTIES FOR THE YEAR 2021 FOR Ombre Co May 1, 2021 Shares held for Trading of Star Co.…
Q: Vaughn Inc. issued $3,790,000 of 10%, 10-year convertible bonds on June 1, 2025, at 99 plus accrued…
A: (a) Entry to record the interest expense at October 1, 2025:Accrual of interest expense:The interest…
Q: On November 1, 2006, Naruto Company issued P8,000,000 of its 10-year, 8% term bonds dated October 1,…
A: A balance sheet is a report that shows an entity's assets, liabilities, and equity at a certain…
Q: Mango Co. issued bonds payable on January 1, 2022. Each $1,000 bond is convertible to 10 shares of…
A: The objective of the question is to prepare an amortization table for the five-year term of the…
Q: Schaffer Corporation issued $640,000 of 5%, 12-year bonds payable on March 31, 2022. The market…
A: Bonds payable refer to long-term debt securities issued by corporations, municipalities, or…
Q: Fowl paid the semiannual interest and issued the requisite number of shares for the bonds being…
A: A bond is an instrument that is a type of loan given by an investor to a borrower. It gives a fixed…
Q: Most Solutions, Incorporated, issued 13% bonds, dated January 1, with a face amount of $640 million…
A: Cash flow statement is one of financial statements includes three activities.Cash flow from…
Q: Prepare the journal entries to record the conversion, amortization, and interest in connection with…
A: Journal entries refer to the concept of noting all the transactions of a company in the desired…
Q: On March 1, 2021, Baddour, Inc., issued 12% bonds, dated January 1, with a face amount of $165…
A: 1. Compute amount of bonds report in its balance sheet as shown below: Working note: Compute…
Q: Bonita Inc. issued $2,280,000 of convertible 10-year bonds on July 1, 2025. The bonds provide for…
A: Journal entries refer to the concept of noting all the transactions of a company in the desired…
Q: Huskey Mining Corporation issued bonds with a par value of $109,000 on January 1, 2023. The annual…
A: Bond :— It is one of the source of capital that pays fixed periodic interest and face value amount…
Q: On January 1, 2024, Essence Communications issued $800,000 of its 10-year, 8% bonds for $700,302. •…
A: Bonds are a type of financial instrument that represents a loan made by an investor to a borrower.…
Q: onversion.
A: Answer : Journal entry : Date Account title Debit Credit April1,2025 Interest payable…
Q: Irbid Corporation issues 3,000 convertible bonds at January 1, 2018. The bonds have a three year…
A: Bonds are instruments which companies and government uses to raise money. It is simply a debt to the…
Q: On February 1, 2024, Sanyal Motor Products issued 6% bonds, dated February 1, with a face amount of…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: Kingbird Inc. issued $4,230,000 of 9%, 10-year convertible bonds on June 1, 2025, at 98 plus accrued…
A: convertible bonds offer investors a consistent income stream by paying interest on a regular basis.…
Q: On January 1, 2023, SJW Corporation issued a series of 100 convertible bonds, maturing in 5 years.…
A: A journal entry is a formal accounting transaction recorded in the general ledger of a business. It…
Q: On February 1, 2024, Sanyal Motor Products issued 6% bonds, dated February 1, with a face amount of…
A: Price of bond is the present value of the coupon payments plus present value of the par value of the…
Q: On January 1, 2020, Safety Company issued 10,000 P1,000 bonds with 10% stated interest payable every…
A: 3.How much is the net increase/decrease in the Shareholders' Equity during 2021? [Indicate whether…
Q: On February 1, 2024, Sanyal Motor Products issued 6% bonds, dated February 1, with a face amount of…
A: The objective of the question is to determine the price of the bonds issued by Sanyal Motor Products…
Q: Larkspur Inc. issued $5,550,000 of convertible 5-year bonds on July 1, 2025. The bonds provide for…
A: Bonds are the source of fund through which the company gathers required investment for its project…
Q: On April 1, 2025, the entity retired 2,000 of its P1,000 bonds at a redemption price of P2,120,000,…
A: Gain or Loss which occurs due to the fact of retirement of bonds at a different value which is not…
Q: On January 1, 2006, Naruto Company issued 9% bonds in the amount of P5,000,000, which mature on…
A: To answer above question, following bond amortization table will be compiled till 30 June, 2006:…
Q: On January 2, 2015, Flint Corporation issued $1,650,000 of 10% bonds at 96 due December 31, 2024.…
A: A bond payable may be redeemed at par, discount, or premium. Loss or gain on redemption is computed…
Q: On January 2, 2016, ABC COMPANY issued P1,500,000 of10% bonds at 97 due December 31, 2025. Legal…
A: Redemption is the return of an investor's principal on a fixed income security such as a bond.…
Q: On January 1, 2023, DMW Corporation issued a series of 100 convertible bonds, maturing in 5 years.…
A: Note: Since you have posted a question with multiple sub parts, we will provide the solution only to…
Q: South Fork Farms, Inc., reported $5,000,000 of 6% bonds payable. Interest is payable semi-annually.…
A: Bond is an investment security which is issued by large organization in order to raise funds. Bond…
Q: On November 1, 2006, Mason Company issued P8,000,000 of its 10-year, 8% term bonds dated October 1,…
A: Bonds are a form of liability being issued by the business, which needs to be paid out by the…
Q: On February 1, 2024, Sanyal Motor Products issued 6% bonds, dated February 1, with a face amount of…
A: 1. Determine the price of the bonds issued on February 1, 2024.The price of a bond is calculated as…
Q: On January 1, 2016, Malibu Co. purchased 1,000,000 10% bonds designated as financial asset at…
A: As per our policy, I am answering first three sub-questions. Please repost the question by asking…
Q: On July 1, 2025, Crane Corporation issued $2,500,000 of 9% bonds payable in 20 years. The bonds…
A: Stock Warrants -Stock warrants are options granted to investors by a company that trades on an…
Q: On February 1, 2018, Cromley Motor Products issued 9% bonds, dated February 1, with a face amount of…
A: The question is based on the concept of Financial Accounting. The price of the bonds issued is the…
Q: s convertible into 35 common shares, which are currently trading at $34 per share. Similar bonds…
A: Bonds - Bonds are fixed-income securities that reflect loans from investors to borrowers (typically…
Q: On February 1, 2024, Sanyal Motor Products issued 8% bonds, dated February 1, with a face amount of…
A: “Since you have posted multiple questions with multiple sub parts, we will provide the solution only…
Q: Federal Semiconductors issued 8% bonds, dated January 1, with a face amount of $740 million on…
A: In finance, bonds are debt securities issued by corporations, governments, or other entities to…
Q: Using 1. a financial calculator, or 2. Excel function PV, calculate the issue price of the bonds and…
A: The bonds are issued either by government entities or corporations to raise money. A bond is a debt…
Q: Swifty Inc. issued $1,920,000 of convertible 10-year bonds on July 1, 2025. The bonds provide for…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: On April 1, 2024, Déjà Vu Company issued 12% bonds that have a total face value of $140,000 (each…
A: Investment in debt securities can be classified under three different categories based on the intent…
Q: On January 1, 2009, Beta Company issued 5,000 of its 12%, P1,000 face value bonds for P5,600,000,…
A: Formula: Net amount received from the issuance of the bonds = Issue value of the bonds + Accrued…
Q: On January 1, 2023, BDM Corporation issued a series of 100 convertible bonds, maturing in 5 years.…
A: Bonds with a conversion feature combine elements of both debt and equity financing. These bonds give…
Q: On January 1, 2016, Cooper Corporation issued $800,000 of 12.5% bonds due January 1, 2023, at 102.…
A: Bond might be issued at the discount or premium with the attached warrant to it and warrant holder…
Step by step
Solved in 2 steps
- Splish Inc. issued $5,250,000 of convertible 5-year bonds on July 1, 2025. The bonds provide for 6% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $108,000, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 15 shares of Splish Inc.'s $1 par value common stock for each $1,000 of bonds. On October 1, 2026, $630,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)…Give me correct answer with explanation.jOn January 2, 2015, Blossom Corporation issued $1,600,000 of 10% bonds at 99 due December 31, 2024. Interest on the bonds is payable annually each December 31. The discount on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable "interest method.") The bonds are callable at 102 (i.e., at 102% of face amount), and on January 2, 2020, Blossom called $960,000 face amount of the bonds and redeemed them. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Blossom as a result of retiring the $960,000 of bonds in 2020. (Round answer to 0 decimal places, e.g. 38,548.) Loss on redemption $ Prepare the journal entry to record the redemption. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent…
- On February 1, 2021, Cromley Motor Products issued 9% bonds, dated February 1, with a face amount of $80 million. The bonds mature on January 31, 2025 (4 years). The market yield for bonds of similar risk and maturity was 10%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $80,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31.Required:1. Determine the price of the bonds issued on February 1, 2021.2. Prepare amortization schedules that indicate (a) Cromley’s effective interest expense and (b) Barnwell’s effective interest revenue for each interest period during the term to maturity.3. Prepare the journal entries to record (a) the issuance of the bonds by Cromley and (b) Barnwell’s investment on February 1, 2021.4. Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2023.On January 1, 2022, Fancy Co issued $100,000 in 10 year bonds. The bonds have a stated rate of 5% but are issued at a discount as the market rate is 7%. Because the market rate is higher, Fancy receives the present value which is $92,640. The coupon is paid annually on December 31st of each year. Provide the journal entries for Jan 1, 2022, and Dec 31st, 2022.Mango Co. issued bonds payable on January 1, 2022. Each $1,000 bond is convertible to 10 shares of common stock after January 1, 2024. The bonds have a 5-year term, a stated rate of 8%, and pay interest annually on January 1. The bonds were issued at a premium of $25,274 which provides an effective interest rate of 6%. (Hint: Prepare an amortization table for the five-year term of the bonds. Note that 2023 is the second year in the term of the bonds.) Prepare the adjusting entry at Dec. 31 , 2023.
- Kingbird Inc. issued $3,000,000 of convertible 10-year bonds on July 1, 2025. The bonds provide for 11% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $56,400, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 9 shares of Kingbird Inc's $100 par value common stock for each $1,000 of bonds. On August 1, 2026, $300,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the…Telta Inc. issued $15,000,000 of 12%, 40-year convertible bonds on November 1, 2025, at 97 plus accrued interest. The bonds were dated July 1, 2025, with interest payable January 1 and July 1. Bond discount (premium) is amortized semiannually on a straight-line basis. On July 1, 2026, one-half of these bonds were converted into 60,000 shares of $1 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) (b) Prepare the entry to record the interest expense at December 31, 2025. Assume that accrued interest payable was credited when the bonds were issued. Credit Interest Payable for the full amount due; debit Interest Payable for the amount recognized at insurance. (Round to nearest dollar.) Prepare the entry to record the conversion on July 1, 2026. (Book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment has been made.On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of $160 million. The bonds were priced at $142.00 million (plus accrued interest) to yield 12%. The price if issued on January 1 would have been $139.25 million. Interest is paid semiannually on June 30 and December 31. Baddour’s fiscal year ends September 30. Required: 1. to 3. What would be the amount(s) related to the bonds Baddour would report in its balance sheet, income statement and statement of cash flows for the year ended September 30, 2024?
- On April 1, 2023, Sheridan Corp. sold 11,000 of its $900 face value, 15-year, 10% bonds at 98. Interest payment dates are April 1 and October 1. The company follows ASPE and uses the straight-line method of bond discount amortization. On March 1, 2024, Sheridan extinguished 2,750 of the bonds by issuing 80,000 shares. At this time, the accrued interest was paid in cash to the bondholders whose bonds were being extinguished. In a separate transaction on March 1, 2024, 120, 000 of the company's shares sold for $32 per share .a.Prepare Sheridan's journal entry to record the issuance of the bonds on April 1, 2023 DR.cash 9702000 Cr.bonds payable 9702000 b.Prepare Sheridan's journal entry to record the payment of the semi-annual interest on October 1, 2023. Dr. interest expense5016000 Cr.cash 495000 Cr.bonds payable 6600 c.Prepare Sheridan's journal entry to record the accrual of the interest expense on December 31, 2023. Dr. interest expense 250800 Cr,interest payable 247500 Cr.bonds…On July 1, 2018, Mason & Beech Services issued $33,000 of 10% bonds that mature in five years. They were issued at par. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On December 31, 2018, what is the total amount paid to bondholders?Libertine Co. issued $10,000,000 of 9%, 10-year, convertible bonds on January 1, 2020. Interest is paid annually on December 31. At the time of the bonds issuance, the market rate for non-convertible bonds was 10%. Each $1,000 bond is convertible into 15 common shares. In 2025, half of the bondholders decided to convert their bonds into common shares. How many shares were issued as a result of the conversion? Question 10 options: 75,000 140,783 15,000 150,000