On January 1, 2014, the $1,000,000 par value bonds of Sinclair Corporation with a carrying value of $950,000 are converted to 500,000 common shares. Journalize the conversion of the bonds.
Answer to relevant QuestionsOn January 1, 2014, the Pareto Company borrowed $80,000 in exchange for an interest-bearing note. The note plus interest compounded at an annual rate of 8% is due on December 31, 2016. Calculate the amount that Pareto will ...Omnicity Corporation had a $1,250,000, 7% bond available for issue on April 1. Interest is to be paid on the last day of each month. On April 14 and 25, bonds with a face value of $890,000 and $360,000, respectively, were ...On October 1, 2014, Dejour Energy Inc. issued a $680,000, 7%, seven-year bond. Interest is to be paid annually each October 1.Requireda. Calculate the issue price of the bond assuming a market interest rate of 8% on the date ...Refer to the amortization schedule prepared in Exercise 15-18. Assume a November 30 year-end.RequiredPart 1Record the following entries:a. Issuance of the bonds on October 1, 2014.b. Adjusting entry to accrue bond interest ...Quetzal Energy Inc. issued bonds on January 1, 2014, that pay interest semi-annually on June 30 and December 31. The par value of the bonds is $240,000, the annual contract rate is 8%, and the bonds mature in 10 ...
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