Each of the following situations below are unrelated: A ) peacock Company follows IFRS. Peacock issues 6
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Question:
Each of the following situations below are unrelated:
Apeacock Company follows IFRS. Peacock issues convertible bonds on June with the
following characteristics:
Face value of bonds
Issuance price of bonds
Price at which bonds would have sold without the conversion privilege
Fair value of the conversion privilege attached to all bonds
B Toucan Inc. has convertible bonds outstanding. Some of the bondholders decided to convert
these bonds to common shares on August This was the first date on which these bonds
were converted to common shares. Information pertaining to the bonds follows:
Total face value of all bonds $
Number of common shares received by bondholders on conversion of the bonds
Market value per common share on the date of conversion
Total unamortized premium on date of conversion
Value of equity portion of convertible bonds at time of issuance
Face value of bonds converted on August
C Bluebird Corporation follows ASPE. Bluebird issues bonds on February To help the sale,detachable stock warrants are issued with each bond sold. Information pertaining to the bonds
follows:
Face value of bonds
Each $ bond was sold with the following number of warrants
Shortly after issuance, similar bonds without warrants were issued at
the following price:
Shortly after issuance, similar warrants sold at the following price:
Selling price of the bonds with the warrants
Required:
Prepare journal entries for the issuance of bonds in a and the conversion of bonds in b
Name the options that Bluebird Corporation has in accounting for the bonds from c
Prepare the journal entry required for each option.
Related Book For
Auditing The Art and Science of Assurance Engagements
ISBN: 978-0133405507
13th Canadian edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones
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