Question: My 2nd journal entry's second account title is wrong as well as the third one's first account tilte. Tbank you!!! Styles Solish Corporation issues 1,500

 My 2nd journal entry's second account title is wrong as well
as the third one's first account tilte.Tbank you!!! Styles Solish Corporation issues
1,500 convertible bonds at January 1, 2016. The bonds have a 3-year
My 2nd journal entry's second account title is wrong as well as the third one's first account tilte.
Tbank you!!!

Styles Solish Corporation issues 1,500 convertible bonds at January 1, 2016. The bonds have a 3-year life, and are issued at par with a face value of $1,000 per bond, giving total proceeds of $1,500,000. Interest is payable annually at 6%. Each bond is convertible into 250 ordinary shares (par value of $1). When the bonds are issued, the market rate of interest for similar debt without the conversion option is 7%. Your answer is correct. Compute the liability and equity component of the convertible bond on January 12 2016. (Round present value factor calculations to 5 decimal places, e., 1.25124 and the final answer to 0 decimal places e.o. 58,971.) $ I Uability Component 1480635 Equity component 39285 == => 2- Normal 1 No Spa Heading Heading 2 Adobe PO Font Paragraph Styles Editing Adobe Acroba Your answer is partially correct. Try again, Prepare the journal entry to record the issuance of the convertible bond on January 1, 2016. Round answers to decimal places, eg, 5.725. If no entry is required, select "No entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date 1500000 Jan 1, 2016 1480835 Litt under 33365 Share Premier Select- Font Paragraph Adobe PD Adobe Styles Editing Your answer is partially correct. Try again. Prepare the journal entry to record the repurchase of the convertible bond for cash at January 1, 2019, its maturity date. (If no entry is required, select "No entry for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan 1, 2019 Convertible P 1500000 Cash 1500000 RE ED

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!