On January 1, 2017, Bonita Corporation issued a series of 500 convertible bonds, maturing in five years.
Fantastic news! We've Found the answer you've been seeking!
Question:
On January 1, 2018, 100 of the bonds were converted into common shares. On June 30, 2018, another 100 bonds were converted into common shares. The bondholders chose to forfeit the accrued interest on these bonds.
On January 1, 2019, when the fair value of the bonds was $313,300 due to a decrease in market interest rates, a conversion inducement of $17/bond was offered to the remaining bondholders to convert their bonds to common shares. All of the remaining 300 bonds were converted into common shares at this time.
Prepare all required journal entries to record the above transactions.
Related Book For
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date: