Question

For each of the unrelated transactions described below, present the entries required to record each transaction....

For each of the unrelated transactions described below, present the entries required to record each transaction.

1. Indigo 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.
2. Sweet 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.
3. Suppose Sepracor, Inc. called its convertible debt in 2020. 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, 2020. 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.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
For each of the unrelated transactions described below, present the entries required to record each transaction....
For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Buffalo Corp. issued $18,700,000 par value 9% 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. Carla Company issued $18,700,000 par value 9% 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 each of the unrelated transactions described below, present the entries required to record each transaction....
For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Tamarisk Corp. issued $20,300,000 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. Vaughn Company issued $20,300,000 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 each of the unrelated transactions described below, present the entries required to record each transaction....
For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Sarasota 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. Ivanhoe 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 each of the unrelated transactions described below, present the entries required to record each transaction....
For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Carla 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. Sarasota 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 each of the unrelated transactions described below, present the entries required to record each transaction....
For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Metlock Corp. issued $21,300,000 par value 9% convertible bonds at 97. If the bonds had not been convertible, the company’s investment banker estimates they would have been sold at 95. 2. Bonita Company issued $21,300,000 par value 9% 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 each of the unrelated transactions described beliw present the entries rewuired to record each transaction....
For each of the unrelated transactions described beliw present the entries rewuired to record each transaction. 1. Pharoah Corp issued $21400000 par value 9% convertible bonds at 98. If the bonds had not been convertible the companys investment banker estimates they would have been sold at 95. 2. Novak Company issued $21400000 par value 9% bonds at 97. One detachable stock purchase warrant was issued with each $100 par value bond. At time of issuance the warrants were selling for...
For each of the unrelated transactions described below, present the entries required to record each transaction....
For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Crane 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. Cheyenne 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 each of the unrelated transactions described below, present the entry(ies) required. Crane Company issued $8,000,000...
For each of the unrelated transactions described below, present the entry(ies) required. Crane Company issued $8,000,000 par value 5% 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 $2. (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 0 for the amounts.) Cheyenne Corp....
Sunland Corp. issued $18,000,000 par value 10% convertible bonds at 99. If the bonds had not...
Sunland Corp. issued $18,000,000 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. Coronado Company issued $18,000,000 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 $5. 3. Suppose Sepracor, Inc. called its convertible debt in 2020. Assume the following related to...
      (b) Present the entries required to record the transaction below. (3 marks)                   Gomez...
      (b) Present the entries required to record the transaction below.                   Gomez Company issues $5,000,000 of bonds with a coupon rate of 8%. To help the sale, detachable share warrants are issued at the rate of ten warrants for each $1,000 bond sold. It is estimated that the fair value of the bonds without the warrants is $4,935,000. The bonds with the warrants sold at 101.       Please show all workings
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT