Accent Capital Ltd. issued 500 $1,000 bonds at 103. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 97, and the warrants had a market value of $27. Record the issuance of the bonds and warrants assuming that Accent Capital Ltd. applied IFRS.
Answer to relevant QuestionsAssume that Accent Capital Ltd. applied ASPE. Discuss the two options available to record the issuance of the bonds and warrants. Provide journal entries for each option. Explain what performance-type plans are and how they differ from other types of compensatory plans. Rockland Corporation earned net income of $300,000 in 2011 and had 100,000 common shares outstanding throughout the year. Also outstanding all year was $800,000 of 10% bonds that are convertible into 16,000 common shares. ...Laurin Limited had 42,000 common shares outstanding on January 1, 2011. On March 1, 2011, Laurin issued 20,000 shares in exchange for equipment. On July 1, Laurin repurchased and cancelled 10,000 shares. On October 1, 2011, ...Use the same information as in E17-13, except for the changes in part (c). Assume instead that 40% of the convertible bonds were converted to common shares on April 1, 2012. Instructions (a) Calculate Mininova’s weighted ...
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