On march 1 2011 doll co issued 10 year convertible

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115. On March 1, 2011, Doll Co. issued 10-year convertible bonds at 106. During 2014, the bonds were converted into common stock whenthe market price of Doll's common stock was 500 percent above its par value. Doll prepares its financial statements according to InternationalAccounting Standards (IFRS). On March 1, 2011, cash proceeds from the issuance of the convertible bonds should be reported as
116. When a company issues bonds between interest dates, the entry to record the issuance of the bonds will:
117. TMC issued $50 million of its 12% bonds on April 1, 2011, at 98 plus accrued interest. The bonds are dated January 1, 2011, and matureon December 31, 2030. Interest is payable semiannually on June 30 and December 31. What amount did TMC receive from the bondissuance?
118. On September 1, 2011, Sam's Shoe Co. issued $350,000 of 8% bonds. The bonds pay interest semiannually on January 1 and July 1 ofeach year. The bonds were sold at the face amount. How much cash did Sam's receive upon sale of the bonds?
119. During 2011 Marquis Company was encountering financial difficulties and seemed likely to default on a $300,000, 10%, four-year notedated January 1, 2009, payable to Third Bank. Interest was last paid on December 31, 2010. On December 31, 2011, Third Bank accepted$250,000 in settlement of the note. Ignoring income taxes, what amount should Marquis report as a gain from the debt restructuring in its2011 income statement?
On January 1, 2011, Morton Sales Co. issued zero coupon bonds with a face value of $6 million for cash. The bonds mature in 10 years andwere issued at a price of $3,050,100.120.Required:How much interest will Morton Sales Co. pay on these bonds in 2011?
121.Required:What is the annual effective interest rate in the market when the bonds were issued?
122.Required:What amount of interest expense on these bonds would Morton Sales Co. report in its 2011 income statement?14-8
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Chapter 20 / Exercise 20-1
Intermediate Financial Management
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Chapter 14 - Bonds and Long-Term Notes

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Term
Fall
Professor
DindoAquino
Tags
1966, 1981, 1968, 1979, 1973, 1970
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The document you are viewing contains questions related to this textbook.
Intermediate Financial Management
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Chapter 20 / Exercise 20-1
Intermediate Financial Management
Brigham/Daves
Expert Verified

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