Question

Kariana Inc.’s December 31, 2014, adjusted trial balance shows the following:
Account Description..........................Balance*
Bonds payable, convertible .............................................................................. $1,050,000
Premium on bonds payable.............................................................................. 14,000
*Assume normal balances.

Required
1. What is the carrying value of the bonds on December 31, 2014?
2. The bonds were converted into 105,000 common shares on January 1, 2015. Journalize the entry assuming the market value per common share on this date was $9.10.



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  • CreatedJanuary 08, 2015
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