Bianca Capital issued 500, $1,000 convertible bonds at 103. Each bond will be converted to 10 common
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- Bianca Capital issued 500, $1,000 convertible bonds at 103. Each bond will be converted to 10 common shares. After issuance, similar bonds were sold at 97, and the shares had a fair value of $2.50. Bianca paid $530,000 in cash to the bondholders to retire the bonds early. On retirement date, the bonds had a carrying value of $489,100 and fair value of $492,370. . Bianca is following ASPE and using the book value method.
- Required: Record the retirement of bonds
Related Book For
Intermediate Accounting
ISBN: 978-1118300855
10th Canadian Edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
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