For each of the unrelated transactions described below, present the e.docx - For each of the unrelated transactions described below present the entries

For each of the unrelated transactions described below, present the e.docx

This preview shows page 1 - 3 out of 3 pages.

Image of page 1
For each of the unrelated transactions described below, present the entries required to record each transaction 1. Grouper Corp. issued $21,700,000 par value 10% convertible bonds at 97. If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 95 2. Monty Company issued $21,700,000 par value 10% bonds at 96. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $5. 3. Suppose Sepracor, Inc. called its convertible debt in 2017. Assume the following related to the transaction. The 11%, $10,200,000
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 3 pages?

Unformatted text preview: par value bonds were converted into 1,020,000 shares of $1 par value common stock on July 1, 2017. On July 1, there was $52,000 of unamortized discount applicable to the bonds, and the company paid an additional $73,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method (Credit account titles are automatically in dented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Credit Debit 1. 2. 3....
View Full Document

  • Spring '17

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors