Question: Archer Inc. issued $4,000,000 par value, 7% convertible bonds at 99 for cash. If the bonds had not included the conversion feature, they would have

Archer Inc. issued $4,000,000 par value, 7% convertible bonds at 99 for cash. If the bonds had not included the conversion feature, they would have sold for 95. Prepare the journal entry to record the issuance of the bonds.

Step by Step Solution

★★★★★

3.24 Rating (176 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Cash Discount ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

11-B-A-S-E (31).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Prepare the journal entry to record income taxes on December 31, 2011, assuming that Turner Corporations income tax expense is $35,000 and that it owes $30,000 in income taxes to the government....

Best Answer 1 Prepare the journal entry to record the issuance of the bonds on July 1 2010 Present Value of the face value of the bonds 496969 Present Value of the payments 50000 419192 496969 419192...

Prepare the journal entry to record Channel One Companys issuance of 100,000 shares of $0.50 par value common stock assuming the shares sell for: a. $0.50 cash per share. b. $2 cash per share.

Archer Company issued (in pounds) 4,000,000 par value, 7% convertible bonds at 99 for cash. The net present value of the debt without the conversion feature is 3,800,000. Prepare the journal entry to...

a. Ahmed company issued $4,000,000 par value, 7% convertible bonds at 99 for cash. The net present value of the debt without the conversion feature is $3,800,000. Prepare the journal entry to record...

The Accounting Whisperer Inc. manufactures white noise machines that whisper accounting formulas while you sleep, so you can subconsciously study even while you sleep! Business has been booming ever...

Marigold Company issued $4,300,000 par value, 7% convertible bonds at 99 for cash. The net present value of the debt without the conversion feature is $4,093,000. Prepare the journal entry to record...

issued $4,490,000 par value, 7% convertible bonds at 97 for cash. If the bonds had not included the conversion feature, they would have sold for 95. Prepare the journal entry to record the issuance...

1. Blue Co. issued $10,000,000 par value, 5% convertible bonds at 99 for cash. If the bonds did not have the conversion feature, they would have sold for 95. What is the initial carrying amount of...

1)Explain policy lags briefly and compare fiscal and monetary policies with respect to inside and outside lags.

The time that it takes a random person to get a haircut is normally distributed, with an average of 23.8 minutes and a standard deviation of 5 minutes. Assume that different people have independent...

Describe how each of the following sources of investment information could help you evaluate a stock investment. Source of Information Type of Information How Could This Help The internet Stock...

What is the portfolio standard deviation if you decide to allocate 40% of your investment in stock A and 60% in stock B, given the correlation between stock A and B is -0.55?

1. Show the journal entry to record the business combinations for 2013 2. Show the journal entry to record amortization of the definite lived and amortizable intangible asset acquired in business...

You have just been hired by ABC Co. as a staff accountant. Your manager asked you to book an entry but you are sure the entry is incorrect. You do not think it complies with accounting standards. How...

Search for a new primary care physician where you live. Describe in depth how you made your physician choice. What impact did price have on your decision making? What were the key factors that...

Dr. D works for Aunt G and the effort he is exhibiting is unacceptably low. Aunt G comes to you for advice on why this might be the case. You decide a good starting point is to refer to the Goal...

The plaintiffs, various environmental groups, sued the defendant Army Corps of Engineers for violating the Clean Water Act, the National Environmental Protection Act, and the Administrative Procedure...

In the 1970s, a leader in the accounting profession proposed that there really needed to be only one underlying standard to govern the establishment of generally accepted accounting principles. That...

Fremantle Brewing Inc. recently purchased Perth Corp. One of the terms of the merger was that if Perths income for 2015 was $500,000 or more, 100,000 additional shares would be issued to Perths...

Gila Corporation earned $2,650,000 during 2014. The company had an average of 520,000 shares of common stock outstanding. The average market price of common stock was $32 per share during the year....

On December 31, 2012, SuperTex Company issues 250,000 stock appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a...

write a method will return the original string but will insert the character / / at the beginning of String b parameter, the middle of String b parameter / / and then at the end of String b parameter...