Pechstein Corporation issued 2,000 shares of $10 par value ordinary shares upon conversion of 1,000 shares of $50 par value preference shares. The preference shares were originally issued at $60 per share. The ordinary shares are trading at $26 per share at the time of conversion. Record the conversion of the convertible preference shares.
Answer to relevant QuestionsEisler Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable share warrant. At issuance, the net present value of the bonds without the warrants was $1,970,000. Prepare the journal entry to ...Tomba Corporation had 300,000 ordinary shares outstanding on January 1, 2010. On May 1, Tomba issued 30,000 ordinary shares. (a) Compute the weighted-average number of shares outstanding if the 30,000 shares were issued for ...On January 1, 2011, Lin Company issued a convertible bond with a par value of $50,000 in the market for $60,000. The bonds are convertible into 6,000 ordinary shares of $1 per share par value. The bond has a 5-year life and ...On January 1, 2010, Magilla Inc. granted share options to officers and key employees for the purchase of 20,000 of the company’s €10 par ordinary shares at €25 per share. The options were exercisable within a 5-year ...In 2010, Buraka Enterprises issued, at par, 75 $1,000, 8% bonds, each convertible into 100 ordinary shares. The liability component of convertible bonds was $950 per bond, based on a market rate of interest of 10%. Buraka ...
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