The December 31, 2020, balance sheet of Kepler Corp. is as follows. On March 5, 2021, Kepler
Question:
The December 31, 2020, balance sheet of Kepler Corp. is as follows.
On March 5, 2021, Kepler Corp. called all of the bonds as of April 30 for the principal plus interest through April 30. By April 30, all bondholders had exercised their conversion to common stock as of the interest payment date. Consequently, on April 30, Kepler Corp. paid the semiannual interest and issued shares of common stock for the bonds. The discount is amortized on a straight-line basis. Kepler uses the book value method.
Instructions
Prepare the entry(ies) to record the interest expense and conversion on April 30, 2021. Reversing entries were made on January 1, 2021. (Round to the nearest dollar.)
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-1119503668
17th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel