Bear Corporation has $3,000,000 of 8 percent, $1,000 bonds outstanding. There is $60,000 of unamortized discount remaining on the bonds after the June 1, 2011, semiannual interest payment. The bonds are convertible at the rate of 30 shares of $10 par value common stock for each $1,000 bond. On June 1, 2011, bondholders presented $1,800,000 of the bonds for conversion. Prepare the journal entry to record the conversion of the bonds.
Answer to relevant QuestionsCompute the interest coverage ratios for 2011 and 2012 from the partial income statements of Rozmus Company that appear below. State whether the ratio improved or worsened overtime.Kinga Corporation issued $8,000,000 in 10.5 percent, 10-year bonds on February 1, 2011, at 104. Semiannual interest payment dates are January 31 and July 31. Use the straight-line method and ignore year-end accruals.1. With ...Jolanta’s, Inc., has a $700,000, 8 percent bond issue that was issued a number of years ago at face value. There are now 10 years left on the bond issue, and the market interest rate is 16 percent. Interest is paid ...Romero Corporation has $10,000,000 of 8 percent, 25-year bonds dated June 1, 2011, with interest payment dates of May 31 and November 30. The company’s fiscal year ends November 30. It uses the straight-line method to ...On August 10, 2011, the board of directors of Pearl International declared a 3-for-1 stock split of its $9 par value common stock, of which 400,000 shares were authorized and 125,000 were issued and outstanding. The market ...
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