Vargo Company has bonds payable outstanding in the amount of $500,000, and the Premium on Bonds Payable account has a balance of $7,500. 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. Instructions Assuming that the book value method was used, what entry would be made?
Q: Grouper Company has bonds payable outstanding in the amount of $350,000, and the Premium on Bonds…
A: Introduction: Preferred stock is similar to a regular stock in that it is a share in a corporation,…
Q: You have been provided with the following information for Company 123 for the year 2020: Net income…
A: Basic EPS ( Earning Per Share )=(Net Income-Preferred Dividend)Weighted average shares outstanding…
Q: The Shareholders' Equity of Jackie Company as of December 31, 2021 is as follows: [Refer to the…
A: 1. Particulars Amount Opening Balance of Treasury Shares 145,200 Fresh Issue of…
Q: Sweet Company has bonds payable outstanding in the amount of $650,000, and the Premium on Bonds…
A: The organization can raise funds for the operation by issuing common stock, preferred stock for…
Q: Common Stock 2.22 Warrants 9700 Conversion Bonds 2.05 Click if you would like to Show Work for this…
A: Diluted earning per share for convertible bond = After tax interest cost /weighed average potential…
Q: At December 31, 19x4, Back Company had 350,000 shares of common stock outstanding. On September 1,…
A: Note: Since we are entitled to answer only one question, we’ll answer the second question because to…
Q: Nolan Corporation has outstanding convertible bonds with a face value of $15,000 and a current book…
A: Under book value method of recording conversion of bonds into common stock takes into account book…
Q: How would I Debit and Credit for the transactions shown? Oct. 1 Purchased $90,000 of Dream…
A: Journal
Q: The Shareholders' Equity of Jackie Company as of December 31, 2021 is as follows: [Refer to the…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par…
A: Under the book value approach of recording conversion, the issuance of shares in place of bonds or…
Q: 1. Richmond Co. sold convertible bonds at a premium. Interest is paid on May 31 andNovember 30. On…
A: As you posted Multiple questions as per our guidelines we are answering only First question. Kindly…
Q: On January 1, the $3,000,000 par value bonds of Spitz Company with a carrying value of $3,000,000…
A: Additional paid in capital in excess of Par - Common stock = Carrying value of bonds - Par value of…
Q: On December 31, Lowland, Inc., converts its $900,000 par value bonds (carrying value also $900,000)…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Flint Corporation has outstanding 1,900 $1,000 bonds, each convertible into 70 shares of $10 par…
A: Bonds are a form of loan or debt being taken by the business. Bonds can be convertible or non…
Q: what is the number of shares Feterik should use to compute diluted earnings per
A: Number of shares = common stock + additional shares + oustanding shares
Q: he company issued 2,500, P125 par ordinary shares for an outstanding bank loan ofP350,000. On this…
A: Share premium is the amount paid in excess of par value of shares. Share premium = Number of shares…
Q: Cove Corp. issued 6% bonds with a maturity value of P6,000,000, together with 100,000 shares of its…
A: Share premium on shares means additional capital amount received on issue of shares, which is the…
Q: Case 1: During the year, Fabi Corporation issued 10,000 ordinary shares with P100 par value and…
A: “Since you have asked multiple questions, we will solve the first question for you (Case 1-i). If…
Q: Four years after issue, debentures with a face value of $1,000,000 and book value of $960,000 are…
A: Discuss the propriety of the preceding accounting treatment. The method employed by the corporation…
Q: Cove Corp. issued 6% bonds with a maturity value of P6,000,000, together with 100,000 shares of its…
A: Amount of shares=Total cash-Bonds sale value=P 11,000,000-P 4,000,0000=P 7,000,000
Q: Next Level Morgan Corporation issues 500 “packages” of securities for $180 per package on December…
A: Journal entry is a primary entry that records the financial transactions initially.
Q: Karen Company showed the following accounts on December 31, 2020. Bonds payable…
A: A bond refers to a debt instrument that is issued by the corporation in order to raise funds. The…
Q: January 15 - It issued 1,300 treasury shares for P40 each. February 1 - Sold 180, P1,000, 9% bonds…
A: Computation of ending balance of the Ordinary Share Capital account: Opening Balance as of 1st…
Q: The following information was obtained from the statement of financial position of NORWAY, INC. on…
A: The answers for the multiple choice questions and relevant computation are shown hereunder : The…
Q: $10,000 a $200,000 bond issue convertible into 4,000 shares of common stock (par value $20). At the…
A: Bond conversion is the process of converting a bond into stock. The conversion ratio defines the…
Q: Laurent Co, Incorporated, has 4,200,000 shares of common stock outstanding on December 31, 2017. An…
A: Laurent Co, Incorporated, has 4,200,000 shares of common stock outstanding on December 31, 2017. An…
Q: The following information is taken from Multi-Task Corporation’s November 30, 2021 balance sheet:…
A: Basic Earnings Per Share : Net income available to common stockholders / Weighted average number of…
Q: Hoffman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was…
A:
Q: ABC Corporation issues 5,000 ordinary shares with a $50 par value for cash at $55 per share. The…
A: At the time of issue of shares, any amount received over and above par value of shares is known as…
Q: Nexis Corp. issues 1,900 shares of $12 par value common stock at $17 per share. When the transaction…
A: Journal entries are passed following the golden rules of accounting Debit all assets and expenses…
Q: Splish Corporation has outstanding 2,200 $1,000 bonds, each convertible into 50 shares of $10 par…
A: Bonds are a form of debt taken by the company. Convertible bonds are those bonds which can be…
Q: Nolan Corporation has outstanding convertible bonds with a face value of $15,000 and a current book…
A: Face value of common stock = (Face value of bonds / $1000) x no. of shares x par value per share =…
Q: Tallent, Inc. has outstanding convertible bonds with $20 million face value, $19.5 million book…
A: When bonds are converted into equity shares then the book value of the bond is debited and stock…
Q: Cove Corp. issued 6% bonds with a maturity value of P6,000,000, together with 100,000 shares of its…
A: Total par value of ordinary shares = No. of ordinary shares, issued x par value per share = 100000…
Q: Wild Cat Corporation has a $1,000,000 debt issue that is convertible into 10,000 prdinary shares.…
A: a) Basic EPS = Net income/Weighted average number of outstanding shares b) Diluted EPS = {Net…
Q: Balance sheet and income statement data indicate the following: Bonds payable, 10% (due in two…
A: The interest earned is the total interest due during the year.
Q: Cove Corp. issued 6% bonds with a maturity value of P6,000,000, together with 100,000 shares of its…
A: Total par value of ordinary shares = No. of ordinary shares, issued x par value per share = 100000…
Q: Katrina Company reported the following information at the end of reporting period: 1,500,000 Bonds…
A: Earnings per share are of two types 1. Basic Earnings per Share is calculated by dividing net…
Q: The information below pertains to Pierpont Corp. for 202 Net income, $1,200,000. Common Stock, $10…
A: The formula for calculating basic EPS involves dividing net income by the number of common shares…
Q: Farmer Company had the following share capital as of December 31, 2021: Bonds payable, P1,000 face…
A: Part A If bonds were issued in the prior year at par value Computation of BEPS & DEPS…
Q: An entity had the following securities outstanding as of December 31, 2021: 10% convertible bonds…
A: Basic EPS:- Basic EPS is a financial ratio which is derive by the net income divided by the share…
Q: The following information was taken from the books and records of Ivanhoe, Inc.: 1. Net Income…
A: Earnings per share: When the company earns the net income then this income is divided by the Number…
Q: Vaughn Corporation has outstanding 2,200 $1,000 bonds, each convertible into 50 shares of $10 par…
A: Convertible Bonds: Convertible bonds are long-term debts issued by a corporation carrying a fixed…
Q: The correct Journal entry needed to record the issue of 200,000 $1 shares at a premium of 30p, and…
A: We have the following information: Number of shares: 200,000 shares Issued at $1 per share at a…
Q: On December 31, Lowland, Inc., converts its 900,000 par value bonds (carrying value also $900,000)…
A: 900,000 par value bonds are converted into 90000 shares of $6 whose value is $540,000 the remaining…
Q: At the beginning of the year, UNIVERSE Company decided to raise additional capital by issuing 8,000…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: The following information was taken from the books and records of Cullumber, Inc.: 1. Net…
A: Earnings Per Share (EPS): Here, NI means Net Income, NoS is Total No. of Shares in Common Stock.…
Vargo Company has bonds payable outstanding in the amount of $500,000, and the Premium on Bonds Payable account has a balance of $7,500. Each $1,000 bond is convertible into 20 shares of
Instructions
Assuming that the book value method was used, what entry would be made?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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?Grouper Company has bonds payable outstanding in the amount of $350,000, and the Premium on Bonds Payable account has a balance of $7,400. 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?(Conversion of Bonds) Vargo Company has bonds payable outstanding in the amount of $500,000, and the Premium on Bonds Payable account has a balance of $7,500. 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.InstructionsAssuming that the book value method was used, what entry would be made?
- Crane Limited had $2.39 million of bonds payable outstanding and the unamortized premium for these bonds amounted to $44,600. Each $1,000 bond was convertible into 20 preferred shares. All bonds were then converted into preferred shares. The Contributed Surplus - Conversion Rights account had a balance of $21,500. Assume that the company follows IFRS. a. Assuming that the book value method was used, what entry would be made? Account Titles and Explanation Debit Credit b. Assume that Crane Ltd. offers $9,000 to induce early conversion. What journal entry would be made? Account Titles and Explanation Debit CreditZotar Company has bonds payable outstanding in the amount of $5,600,000, and the Premium on Bonds Payable account has a balance of $150,000. Each $1,000 bond is convertible into 10 shares of common stock with a par value of $1 per share. All bonds are converted into common stock.InstructionsPrepare the journal entry for the conversion assuming the book value method was used.For each of the unrelated transactions described below, present the entries required to record each transaction. Please fill in all the boxes as shown in the image. 1. Headland Corp. issued $21,400,000 par value 9% convertible bonds at 98. If the bonds had not been convertible, the company’s investment banker estimates they would have been sold at 95. 2. Sage Company issued $21,400,000 par value 9% bonds at 97. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $5. 3. Suppose Sepracor, Inc. called its convertible debt in 2020. Assume the following related to the transaction. The 10%, $10,000,000 par value bonds were converted into 1,000,000 shares of $1 par value common stock on July 1, 2020. On July 1, there was $51,000 of unamortized discount applicable to the bonds, and the company paid an additional $68,000 to the bondholders to induce conversion of all the bonds. The company records…
- For each of the unrelated transactions described below, present the entries required to record each transaction. 1. 2. 3. Vaughn Corp. issued $21,600,000 par value 11% convertible bonds at 97. If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 95. Bramble Company issued $21,600,000 par value 11% bonds at 96. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $4. 1. Suppose Sepracor, Inc. called its convertible debt in 2025. Assume the following related to the transaction. The 12%, $10,900,000 par value bonds were converted into 1,090,000 shares of $1 par value common stock on July 1, 2025. On July 1, there was $55,000 of unamortized discount applicable to the bonds, and the company paid an additional $78,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method. (List all debit…Blend Inc. issued 500, $1,000 bonds at 102. Each bond was issued with two detachable stock warrants. After issuance, the bonds were selling in the market at 97. a. Assume the warrants had a market value of $35 each after issuance. Under the proportional method, the journal entry to record the issuance of the bonds and warrants includes a debit to Discount on Bonds Payable of? b. Assume that after issuance, the market price of the warrants, without the bonds, cannot be determined. Under the incremental method, the journal entry to record the issuance of the bonds and warrants includes a debit to Discount on Bonds Payable of? Please avoid solutions image based thenxCan you help explain the computations on this problem: E. Corp issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrent. After issuance, the bonds were selling in the market at 98, and the warrents had a market price of $40. Use the proportional method to record the issuance of bonds and warrents. Thanks,
- For each of the unrelated transactions described below, present the entry(ies) required. (a) Partially correct answer iconYour answer is partially correct. Sweet Company issued $11,000,000 par value 5% bonds at 97. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $2.For each of the unrelated transactions described below, present the entries required to record each transaction. 1. 2. 3. Sheffield Corp. issued $20,400,000 par value 9% convertible bonds at 98. If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 95. Tamarisk Company issued $20,400,000 par value 9% bonds at 97. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $4. Suppose Sepracor, Inc. called its convertible debt in 2025. Assume the following related to the transaction. The 10%, $9,900,000 par value bonds were converted into 990,000 shares of $1 par value common stock on July 1, 2025. On July 1, there was $51,000 of unamortized discount applicable to the bonds, and the company paid an additional $68,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method. (List all debit…For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Splish Corp. issued $19,300,000 par value 10% 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. Blossom Company issued $19,300,000 par value 10% 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 11%, $9,700,000 par value bonds were converted into 970,000 shares of $1 par value common stock on July 1, 2020. On July 1, there was $56,000 of unamortized discount applicable to the bonds, and the company paid an additional $79,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method.…