Question: For each of the unrelated transactions described below present the entry ies required

For each of the unrelated transactions described below, present the entry(ies) required to record each transaction.
1. Coyle Corp. issued €10,000,000 par value 10% convertible bonds at 99. If the bonds had not been convertible, the company’s investment banker determines that they would have been sold at 95.
2. Lambert Company issued €10,000,000 par value 10% bonds at 98. One share warrant was issued with each €100 par value bond. At the time of issuance, the warrants were selling for €4. The net present value of the bonds without the warrants was €9,600,000.
3. Sepracor, Inc. called its convertible debt in 2010. 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, 2010. 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. The company records the conversion using the book value method.

  • CreatedJune 17, 2013
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