Archer Company issued 4,000,000 par value, 7% convertible bonds at 99 for cash. The net present value
Question:
Archer Company issued £4,000,000 par value, 7% convertible bonds at 99 for cash. The net present value of the debt without the conversion feature is £3,800,000. Prepare the journal entry to record the issuance of the convertible bonds.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (15 reviews)
Cash 4000000 99 396000...View the full answer
Answered By
Dinesh F
I have over 3 years of professional experience as an assignment tutor, and 1 year as a tutor trainee.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Question Posted:
Students also viewed these Business questions
-
Archer plc issued 4,000,000 par value, 7% convertible bonds at 99 for cash. The net present value of the debt without the conversion feature is 3,800,000. Prepare the journal entry to record the...
-
Prepare the journal entry to record income taxes on December 31, 2011, assuming that Turner Corporations income tax expense is $35,000 and that it owes $30,000 in income taxes to the government....
-
Prepare the Journal entry to record the inventory Shrinkage and prepare all closing entries. The trial balance for a merchandiser, before the journal entries below, is as follows. A physical count of...
-
The following are the Ledger Balance (in thousands) extracted from the books of Vaishnavi Bank Ltd as on March 31, 2016. The bank's Profit and Loss Account for the year ended and Balance Sheet as at...
-
You have the following information about Burgundy Basins, a sink manufacturer. Burgundy is contemplating what for the company is an average-risk investment costing $40 million and promising an annual...
-
On October 16, 2007, the firm from Exercise 4 decides to enter into a Eurodollar futures contract with expiration on April 14, 2008, so it buys 100 contracts (each is worth $ 1,000,000). The firm...
-
In which of the following situations the auditor is likely to audit accounting estimates: (a) Allowance for doubtful accounts (b) Reserve for obsolete inventory (c) Changes in the useful life of...
-
The following selected transactions were completed by Artic Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Jan. 2. Sold merchandise on account...
-
not useful at all barely useful somewhat useful very useful Use his professor's list of suggestions to find a new group to research that he knows will work for the paper. Explain to his pr...
-
The Fashion Rack has a monthly accounting period. All transactions are recorded in a general journal. Postings are made from the general journal to the accounts receivable ledger, accounts payable...
-
When viewing a specimen through a light microscope, scientists use _________ to distinguish the individual components of cells. a. A beam of electrons b. Radioactive isotopes c. Special stains d....
-
Archer Company issued 4,000,000 par value, 7% convertible bonds at 99 for cash. The net present value of the debt without the conversion feature is 3,800,000. Prepare the journal entry to record the...
-
Fill in the blank with an appropriate word, phrase, or symbol(s). A list of all possible outcomes of an experiment is called a(n) ________ space.
-
As part of your new job at Headman the Puck, the company is providing you with a new car. Your firm will lease this $34,000 car for you. The terms of the lease are seven annual payments at an...
-
At age 30, Michelle starts an IRA to save for retirement by depositing $150 at the end of each month. If she can count on an APR of 4.2%, how much will she have when she retires 35 years later at age...
-
How does organizational culture contribute to or detract from organizational effectiveness, and what practices can be used to cultivate a culture that supports the organization's mission?
-
Write a java program to find out given number is positive or negative?
-
Alpha and Beta Companies can borrow for a five-year term at the following rates: Moody's credit rating Fixed-rate borrowing cost Floating-rate borrowing cost Alpha Aa 11.6% LIBOR Beta Baa 14.2% LIBOR...
-
Glendo Grocery buys and sells groceries in a community far from any major city. Travis Glendo, the owner, budgeted the store's purchases as follows: October November December Required purchases (on...
-
The first national bank pays a 4% interest rate compound continuously. The effective annual rate paid by the bank is __________. a. 4.16% b. 4.20% c. 4.08% d. 4.12%
-
Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course....
-
Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course....
-
Hannon Company makes swimsuits and sells these suits directly to retailers. Although Hannon has a variety of suits, it does not make the All-Body suit used by highly skilled swimmers. The market...
-
You pick the organization you want to represent. Remember it is a national retail chain of stores. There are thousands of options so pick one you will like to learn more about (e.g. Walmart, Best...
-
Topic Threads Posts Last Post Discussion Module 8 Chapter 2 2 Jan 4 - Jan 1 0 Instructions Read the following article: "Production Costs: What They Are and How to Calculate Them" Return here and post...
-
Marginal cost of energy production is: Question 20 options: Total variable costs of energy production divided by quantity of energy Change in total fixed costs of energy production due to a one unit...
Study smarter with the SolutionInn App