On July 1, 2014, Loudre Ltd. exercises a $4,000 call option on its outstanding bonds, which have a carrying value of $206,000 and par value of $200,000. Loudre exercises the call option immediately after the semi-annual interest is paid on June 30, 2014. Record the journal entry to show the retirement of the bonds.
Answer to relevant QuestionsOn 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.Xtra-Gold Corporation had a $1,200,000, 5% bond available for issue on September 1, 2014. Interest is to be paid quarterly beginning November 30. All of the bonds were issued at par on October 1. Prepare the appropriate ...On November 1, 2014, Yardley Inc. issued a $740,000, 5%, two-year bond. Interest is to be paid semi-annually each May 1 and November 1.Requireda. Calculate the issue price of the bond assuming a market interest rate of 6% on ...On October 1, 2014, Ambrilia Biopharma Inc. issued a $750,000, 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 5%.b. ...On December 31, 2014, a day when the available interest rate was 10%, Valcent Products Inc. leased equipment with an eight-year life. The contract called for a $7,200 annual lease payment at the end of each of the next five ...
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