Question: 1- Suppose a firm issues a single bond with a face value of $100,000 which is Convertible into 10,000 Ordinary Shares with a Par Value

1- Suppose a firm issues a single bond with a face value of $100,000 which is Convertible into 10,000 Ordinary Shares with a Par Value of $1. The credit entry to Share Premium Conversion Equity on the date of issue was for $20,000. Assume that the maturity date of the bonds has now arrived and the bonds will be converted into Ordinary Shares.

The Debit Entry to the Share Premium Conversion Equity account on the date of conversion will be for an amount of:

2- Suppose a firm issues a 1,000 Convertible Preference Shares for with a par value of $100 each. Each preference share is convertible into 5 Ordinary Shares with a par value of $5. The credit entry to Share Premium Conversion Equity on the date of issue was for $200,000. Assume that the maturity date of the Convertible Shares has now arrived and the Convertible Preference Shares will be converted into Ordinary Shares.

The Credit Entry to the Share Premium Conversion Equity account on the date of conversion will be for an amount of:

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

What's this story about? A Lot of Weeding Masa walked slowly toward the house, stopping now and then to snip off fading flowers, or to pull out weeds growing between the plants. But there were very...

1- Suppose a firm issues a single bond with a face value of $100,000 which is Convertible into 10,000 Ordinary Shares with a Par Value of $1. The credit entry to Share Premium Conversion Equity on...

q26: Suppose a firm issues a single bond with a face value of $100,000 which is Convertible into 10,000 Ordinary Shares with a Par Value of $1. The credit entry to Share Premium Conversion Equity on...

Q24: Suppose a firm issues a single bond with a face value of $100,000 which is Convertible into 10,000 Ordinary Shares with a Par Value of $1. The credit entry to Share Premium Conversion Equity on...

q25: Suppose a firm issues a single bond with a face value of $100,000 which is Convertible into 10,000 Ordinary Shares with a Par Value of $1. The credit entry to Share Premium Conversion Equity on...

Q22:Suppose a firm issues a single bond with a face value of $100,000 which is Convertible into 10,000 Ordinary Shares with a Par Value of $1. The credit entry to Share Premium Conversion Equity on...

(11 marks) Question 5 Treasure Island Ltd. currently has the following capital structure: Debt: $3,500,000 par value of outstanding non-callable bond that pays annually 10% coupon rate with an annual...

Q1. Cotton On Ltd. currently has the following capital structure: Debt: $3,500,000 par value of outstanding bond that pays annually 10% coupon rate with an annual before-tax yield to maturity of 12%....

Cotton On Ltd. currently has the following capital structure: Debt: $3,500,000 par value of outstanding bond that pays annually 10% coupon rate with an annual before-tax yield to maturity of 12%. The...

Question 9: You own a bond with a face value of $100 000 and a conversion ratio of 350. What is the conversion price? Question 10: You are the CFO of Barlow Property Group on 30 June 2019. The...

1. After getting lost on their way to the mall, Billy, Elameri, and Wanda run out of gas and get stuck in the middle of nowhere. The only source of heat they have is a small kerosene camping stove....

How important are supplier relationships to IKEAs success? How does IKEA manage its supply chain to deliver on its strategic mission? IKEA is one of the worlds most successful global retailers. In...

The document issued by the seller that informs the buyer of the details of customer refund is called a debit memorandum. True or False

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

2. Practice listening with your eyes as discussed in this chapter. When you go to your next class, observe your instructor or whoever is speaking. Form an overall impression of the speaker from...

3. As you become a more critical listener, inquire about inconsistencies when you observe them in conversation. For example, if your friend offers you verbal and nonverbal messages that contradict...

1. Describe a time when you listened well. How do you know you listened well? Where were you? Who were you with? What were your goals? Did you adapt your listening to the situational, cultural, or...