24. On January 1, 20x1, Patience Co. issued 10%, 3-year, P2,000,000 convertible bonds at 105. Each...

 

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24. On January 1, 20x1, Patience Co. issued 10%, 3-year, P2,000,000 convertible bonds at 105. Each P1,000 bond is convertible into 8 shares with par value per share of P100. Principal is due on Dec 31, 20x3, while interest is due annually every year-end. On issuance date, the bonds were selling at a yield to maturity market rate of 12% without the conversion option. All the bonds were converted into equity on December 31, 20x2. Patience Co. incurred stock issuance costs of P20,000. Required: Provide all journal entries in 20x1 and 20x2 24. On January 1, 20x1, Patience Co. issued 10%, 3-year, P2,000,000 convertible bonds at 105. Each P1,000 bond is convertible into 8 shares with par value per share of P100. Principal is due on Dec 31, 20x3, while interest is due annually every year-end. On issuance date, the bonds were selling at a yield to maturity market rate of 12% without the conversion option. All the bonds were converted into equity on December 31, 20x2. Patience Co. incurred stock issuance costs of P20,000. Required: Provide all journal entries in 20x1 and 20x2

Answer rating: 100% (QA)

January 120X1 Face Value of bons P2000000 Number of Bonds 2000000100 20000 bonds Issue Value 20000 1... View the full answer