A Company issued a convertible bond payable on the interest payment date as follows Bonds payable $700,000 Coupon rate 5 3 Issue price $725,000 Term 10 years Each $1,000 bond is convertible into 20 shares Number of potential shares if 100 converted 14,000 shares Bond conversion date December 31, 20...

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A Company issued a convertible bond payable on the interest payment date as follows. Bonds payable $700,000

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A Company issued a convertible bond payable on the interest payment date as follows.

Bonds payable	$700,000
Coupon rate	5.3%
Issue price	$725,000
Term	10 years
Each $1,000 bond is convertible into	20 shares
Number of potential shares if 100% converted	14,000 shares
Bond conversion date	December 31, 20X3
Bonds converted	30%

1.What is the credit to additional paid in capital at the time of conversion on December 31, 20X3?

2. What is interest expense for the year ended December 31, 20X4?

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0470616314

IFRS edition volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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Posted Date: Jan 02, 2020 04:39 AM

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A Company issued a convertible bond payable on the interest payment date as follows. Bonds payable $700,000

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Intermediate Accounting

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