Branson Corporation issued $500,000 of convertible bonds at par value. The bonds were issued with a stated interest rate of 3%. Each $1,000 bond is convertible into 20 shares of the corporation's $1 par value common stock. Branson may also elect to settle bonds with a cash payment in lieu of issuing stock. Similar bonds without the conversion feature would have sold for $455,000. Prepare the journal entry' for Branson to record the issuance of the convertible bonds.
Answer to relevant QuestionsRefer to the information in RE14-1. Assume Canglon uses the effective interest method to amortize the discount. Prepare the journal entry to record the first interest payment. In RE14-1 Canglon, Inc issues 10%, 5-year bonds ...On October 1, 2016, Ball Company issued 9% bonds dated October 1, 2016, with a face amount of $200,000. The bonds mature in 10 years. Interest is paid semiannually on March 31 and September 30. The proceeds from the bond ...Obtain The Coca-Cola Company’s 2012 annual report cither using the “Investor Relations" portion of its website (do a Web search for Coca -Cola investor relations) or go to http://www.scc.gov and click “Search for ...1. On July 14, Peterman Corporation exchanged 1,000 shares of its $8 par value common stock for a plot of land. Peterman’s common stock is listed on the NYSE and traded at an average price of $21 per share on July 14. The ...On January' 1, Lorain Corporation had 2,000 shares of $5 par common stock LO 15.7 authorized and outstanding. These shares were originally issued at a price of $26 per share. In addition, 500 shares of $50 par preferred ...
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