Wildhorse Corp. offers three-year, 6% convertible bonds (par $1,120). Each $1,120 bond may be converted into 265 common shares, which are currently trading at $3 per share. Similar straight bonds carry an interest rate of 9%. 1,000 bonds are issued at par. Prepare the journal entries at the date of issuance under both IFRS and ASPE. Assume further that the company chooses to value the equity component at $0 under ASPE. (Credit account titles are automatically indented when the 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. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971.) Account Titles IFRS ASPE Debit Credit

Wildhorse Corp. offers three-year, 6% convertible bonds (par $1,120). Each $1,120 bond may be converted into 265 common shares, which are currently trading at $3 per share. Similar straight bonds carry an interest rate of 9%. 1,000 bonds are issued at par. Prepare the journal entries at the date of issuance under both IFRS and ASPE. Assume further that the company chooses to value the equity component at $0 under ASPE. (Credit account titles are automatically indented when the 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. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971.) Account Titles IFRS ASPE Debit Credit

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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