Question: Please, only answer if you are 1 0 0 % sure your answer is correct, I'll leave a thumb down and report to chegg if
Please, only answer if you are sure your answer is correct, I'll leave a thumb down and report to chegg if it is not!
Nero Solutions Co issued an $ threeyear bond for $ The bond pays interest annually, at each yearend. At maturity, the bond can be repaid in cash or converted to common shares at the investors option. The market interest rate for bonds of similar term and risk, but that are not convertible, is in the range of
Required:
Calculate the portion of the bond to be recorded as a liability.
Bond liability:
Provide the entry to record issuance of the bond.
Record the entry for issuance of bonds.
Provide the entries to record interest expense and the annual cash payment each year over the bonds threeyear life.
Record the entry for interest expense and annual cash payment
Record the entry for interest expense and annual cash payment.
Record the entry for interest expense and annual cash payment.
Provide the entry to record the maturity of the bond, assuming that shares were issued.
Record the entry for issue of shares towards maturity of bonds.
Provide the entry to record the maturity of the bond, assuming that cash is paid.
Record the entry for repayment on bonds payable.
Record the entry for lapse of conversion rights.
Provide the entry to record early repayment of the bond, assuming that it was repaid in cash in an open market transaction after two complete years. Cash of $ was paid, of which $ related to the liability and $ related to the conversion option.
Record the entry for early repayment of bonds.
Please answer all parts of the question! Thank you!
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