Assume the same information in E16.1, except that Angela AG converts its convertible bonds on January 1,
Question:
Assume the same information in E16.1, except that Angela AG converts its convertible bonds on January 1, 2023.
Instructions
a. Compute the carrying value of the bond payable on January 1, 2023.
b. Prepare the journal entry to record the conversion on January 1, 2023.
c. Assume that the bonds were repurchased on January 1, 2023, for €1,940,000 cash instead of being converted. The net present value of the liability component of the convertible bonds on January 1, 2023, is €1,900,000. Prepare the journal entry to record the repurchase on January 1, 2023.
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Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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