Worldview Imaging Ltd. issued $3,600,000 of 9% notes payable on December 31, 2010, at a price of

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Worldview Imaging Ltd. issued $3,600,000 of 9% notes payable on December 31, 2010, at a price of 94.
The notes term maturity is 10 years. After four years, the notes may be converted into Worldview common stock. Each $1,000 face amount of notes is convertible into 60 shares of$1 par common stock. On December 31, 2015, note-holders exercised their right to convert all the notes into common stock.

Requirements
1. Without making journal entries, compute the carrying amount of the notes payable at December 31, 2015, immediately before conversion. Worldview uses the straight-line method to amortize bonds.
2. All amortization has been recorded properly. Journalize the conversion transaction at December 31, 2015.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Financial accounting

ISBN: 978-0136108863

8th Edition

Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas

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