On January 1 2020 lakes limited a private company which follows ASPE standards issued 8 year 200000$
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Question:
On January 1 2022 100% of the holders of lakes, s convertible bonds converted their bonds to shares, when lakes's shares were trading at 58 per share. The bond's fair value at the time of conversion was 179969. lakes offers an additional premium of 300$ to bondholders to convert the bond.
a. Prepare journal entry Lakes would have made on January 1 2020 to record the issuance of the bonds.
b. prepare the journal entries to record the conversion
c. how many shares were issued at the time of conversion.
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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