Using the information provided in P14-9, complete the following requirements assuming that Super View Video is an
Question:
Using the information provided in P14-9, complete the following requirements assuming that Super View Video is an IFRS reporter.
Required
a. Prepare the journal entry to record the bond issue.
b. Prepare the amortization table.
c. Prepare the journal entry to record the first interest payment.
d. The bonds converted on January 1, 2025. Prepare the journal entry to record the bond conversion
Data from Exercises 9
On January 1, 2022, Super View Video, Incorporated issued $1,550,000 of $1,000 par value, 8%, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2022. The market rate of interest for similar nonconvertible bonds on the date of the bond issue was 10%. The bonds were sold for $1,704,287, yielding an effective rate of 6%. Each bond is convertible into 20 shares of Super View’s $1 par value common stock.
Step by Step Answer:
Intermediate Accounting
ISBN: 9780136946694
3rd Edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella