1. MMM COMPANY has outstanding convertible bonds with a face value of $10,000. The Company has...
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1. MMM COMPANY has outstanding convertible bonds with a face value of $10,000. The Company has just paid interest on these bonds. The bonds have a book value of $10,500. Each $1000 bond can be converted into 40 shares of common stock with a par value of $20. All the bonds are converted into Common Stock at $30 per share. Required: a. Use the Book Value Method to effect the conversion. Show computation. b. Prepare general journal entries to record the conversion in the books of MMM Company. 1. MMM COMPANY has outstanding convertible bonds with a face value of $10,000. The Company has just paid interest on these bonds. The bonds have a book value of $10,500. Each $1000 bond can be converted into 40 shares of common stock with a par value of $20. All the bonds are converted into Common Stock at $30 per share. Required: a. Use the Book Value Method to effect the conversion. Show computation. b. Prepare general journal entries to record the conversion in the books of MMM Company.
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a b Date Calculation of gain or loss on conversion of bonds into common stock C... View the full answer
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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