Sweet Company has bonds payable outstanding in the amount of $650,000, and the Premium on Bonds Payable account has a balance of $7,700. Each $1,000 bond is convertible into 20 shares of preferred stock of par value of $50 per share. All bonds are converted into preferred stock. Assuming that the book value method was used, what entry would be made?

Kk.342.

For each of the unrelated transactions described below, present the entries required to record each transaction. 1.   Bridgeport Corp. issued $18,800,000 par value 11% convertible bonds at 99. If the bonds had not been convertible, the company’s investment banker estimates they would have been sold at 95. 2.   Indigo Company issued $18,800,000 par value 11% bonds at 98. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $4. 3.   Suppose Sepracor, Inc. called its convertible debt in 2020. Assume the following related to the transaction. The 12%, $10,100,000 par value bonds were converted into 1,010,000 shares of $1 par value common stock on July 1, 2020. On July 1, there was $52,000 of unamortized discount applicable to the bonds, and the company paid an additional $75,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method.…

Blanca Company has the following independent bond issuances. a.) Issues $600,000 bonds at 96. b.) Issues $700,000 bonds at 102. c.) Issues $200,000 bonds at 100. Required: 1.) Prepare the journal entries to record the bond issuances under of the independent situations.