Computalog Inc. showed the following on its December 31, 2023, balance sheet Bonds payable, convertible Less: Unamortized discount Required: $4,130,000 14,868 $4,115,132 1. Assuming the bonds are convertible into 413,000 common shares, journalize the conversion on January 1, 2024, when the market value per common share was $10.25
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Computalog Inc. showed the following on its December 31, 2023,
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- If bonds with a face value of $124000 are converted into common stock when the carrying value of the bonds is $118000, the entry to record the conversion will include a debit to O Bonds Payable equal to the market price of the bonds on the date of conversion. O Bonds Payable for $124000. O Discount on Bonds Payable for $6000. O Bonds Payable for $118000. eTextbook and Media Save for Later Attempts: 0 of 2 used Submit Answer @ 3 4 5 6 7 W e у S g h j k V b n m alt ctrl[Show your computation] Prepare the journal entry for each transaction of Splash Co. in year 2022 described below: 1. Splash Co. called its convertible debt in 2022. Assume the following related to the 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 carrying amount of the debt on July 1 was €9,700,000. The Share Premium-Conversion Equity 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 to buy one share at €32. The rights were void after 30 days. The market price of the shares at this time was €34 per share. 3. The company sold to the public a €200,000, 10% bond issue at 104. The company also issued with each €100 bond one detachable share-purchase warrant, which provided for the purchase of ordinary shares at €30 per share. The net…Induced Conversion Instructions Chart of Accounts General Journal X Instructions On July 1, 2020, Tuttle Company had bonds payable outstanding with a face value of $100,000 and a book value of $93,000. The interest on these bonds was paid on June 30. When these bonds were issued, each $1,000 bond was convertible into 25 shares of $10 par common stock. To induce conversion, on June 15, 2020, the terms were changed so that each bond was convertible into 28 shares of common stock if the conversion was made within 30 days. All the bonds were converted on July 1, 2020, when the market price of the common stock was $42 per share. Required: Next Level Using the book value method, record the conversion of the bonds on July 1, 2020. GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 2 3 4 5
- Crane Company issued $740,000, 10-year, 5% bonds at 103. Suppose the remaining Premium on Bonds Payable was $13,320 on December 31, 2025. Show the balance sheet presentation on this date. CRANE COMPANYBalance Sheet (Partial)choose the accounting periodchoose the accounting period select an opening subsection nameselect an opening subsection name enter a balance sheet itementer a balance sheet item $enter a dollar amount enter a dollar amount select between addition and deductionselect between addition and deduction : enter a balance sheet itementer a balance sheet item enter a dollar amountenter a dollar amount $enter a total of the two previous amounts enter a total of the two previous amountsWaterway Inc. issued $3,830,000 par value, 7% convertible bonds at 98 for cash. If the bonds had not included the conversion feature, they would have sold for 95.Prepare the journal entry to record the issuance of the bonds. Account Titles and Explanation Debit CreditView Policies Current Attempt in Progress If bonds with a face value of $124000 are converted into common stock when the carrying value of the bonds is $118000, the entry to record the conversion will include a debit to O Bonds Payable equal to the market price of the bonds on the date of conversion. O Bonds Payable for $124000. O Discount on Bonds Payable for $6000. O Bonds Payable for $118000. eTextbook and Media Save for Later Attempts: 0 of 2 used Submit Answer 4 5 6 7 8 9 e C b n
- (Issuance and Conversion of Bonds) For each of the unrelated transactions described below,present the entry(ies) required to record each transaction.1. Ehrlich Corp. issued $50,000,000 par value 8% convertible bonds at 102. If the bonds had not been convertible, thecompany’s investment banker estimates they would have been sold at par.2. On October 31, 2021, Ehrlich Corp. called its 10% convertible debenture bonds for conversion. The $60,000,000 parvalue bonds were converted into 600,000 shares of $1 par value common stock. On October 31, there was $155,000of unamortized premium applicable to the bonds, and the company paid an additional $355,000 to the bondholders toinduce conversion of all the bonds. The company records the conversion using the book value method. 3. Ehrlich Corporation issued 2,000 shares of $10 par value common stock upon conversion of 1,000 shares of $50 par value preferred stock. The preferred stock was originally issued at $60 per share. The common stock is…Metlock Ltd. issued a $791,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Metlock followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places e.g. 58,971.) Proceeds from sale of bond Discount on bond Prepare the journal entries for above transactions. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the…Bradley-Link’s December 31, 2021, balance sheet included the following items: Long-Term Liabilities ($ in millions) 11.0% convertible bonds, callable at 102 beginning in 2022,due 2025 (net of unamortized discount of $5) [note 8] $245 11.8% registered bonds callable at 105 beginning in 2031,due 2035 (net of unamortized discount of $1) [note 8] 68 Shareholders’ Equity 6 Equity—stock warrants Note 8: Bonds (in part)The 11.0% bonds were issued in 2008 at 96.0 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond is convertible into 50 shares of the Company’s no par common stock. The 11.8% bonds were issued in 2012 at 103 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond was issued with 50 detachable stock warrants, each of which entitles the holder to purchase one share of the Company’s no par common stock for $30, beginning 2022. On January 3, 2022, when Bradley-Link’s common stock had a market…
- (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?MSI Inc -(ALL ENTRIES FOR MSI ONLY) KEY for Accounting Component Assets = A Liabilities = L Stockholders' Equity = SE Accounting Component On July 1st 2019, MSI Inc issued $800,000, 3%, 10 year bonds at 103. The bonds pay interest annually. Prepare the Debit (DR) Credit (CR) Account 3 journal entry to record the issuance of the bonds. What is the total cost of borrowing? TOTAL COST OF BORROWING = On January 1st 2020, MSI Inc issues $500,000 4%, 6 year bonds at face value. Prepare the entry to record the issuance of the bonds. On December 31st 2020, MSI Inc does an adjusting entry to record the accrual of interest for #4 above. On January 1st, 2020, MSI pays the accrued bond interest and calls the bonds at 101 (refer to #4 above). Record the payment of interest and redemption of the bonds.Saved He General Corporation purchased $938,000 of bonds with a coupon rate of 10% at face value on December 5, 2021. The market price of the bond was $984,000 on December 31, 2021. Required: Prepare the appropriate journal entry on December 31, 2021, to properly value the bonds assuming the bonds are classified as: (1f no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Ignore the journal entry for coupon payment and interest recognition. 1. Trading securities. 2. Securities available-for-sale. 3. Held-to-maturity securities. View transaction list Journal entry worksheet く 3 > Record the unrealized holding gain or loss for held-to-maturity securities. Note: Enter debits before credits. Transaction General Journal Debit Credit MacBook Pro 888 DII DD F3 FS F7 F10 F11 # 2$ & 2 3 4. 8 Q E R Y U S F つ K く C V command otion command エ