Q: Use the information from E14-16 and assume that all bonds
Use the information from E14-16 and assume that all bonds convert after 3 years. The carrying value of the bonds at the conversion date is $913,000. Prepare the journal entry at conversion Data from...
See AnswerQ: Randolph Company issued 4,500 of its $1,000
Randolph Company issued 4,500 of its $1,000 par value bonds for $1,440, providing total cash proceeds of $6,480,000. There are no bond issue costs. The market price of Randolph’s common shares on the...
See AnswerQ: DHC Associates issued 2,100 of its $1,000
DHC Associates issued 2,100 of its $1,000, 8%, 5-year par value bonds. There are no bond issue costs. Interest is paid annually. The market rate on the date of issue was 9%. The market price of DHC co...
See AnswerQ: Michael and Sons, Ltd. sells lawn and garden products for
Michael and Sons, Ltd. sells lawn and garden products for home use. The company offers an assurance-type warranty that covers all repair costs, including parts and labor, for 1 year after the date of...
See AnswerQ: EA&Y, Inc. borrowed $350,000 on
EA&Y, Inc. borrowed $350,000 on January 1, 2018, with a 6% interest rate. It will make a payment of $101,007 annually (beginning December 31, 2018) until the note is paid off on December 31, 2021. The...
See AnswerQ: On January 1, 2018, McMillan Corporation issued $86,
On January 1, 2018, McMillan Corporation issued $86,000 par value, 6-year bonds with a 0% stated interest rate. The discount on the bonds is amortized annually each December 31. The market rate of int...
See AnswerQ: On January 1, 2018, Sohape Corporation issued $100,
On January 1, 2018, Sohape Corporation issued $100,000 par value, 5-year bonds with a 3% stated interest rate. Interest is paid annually each December 31. The market rate of interest on the date of th...
See AnswerQ: Broad Street Company borrows $975,050 by issuing an 8
Broad Street Company borrows $975,050 by issuing an 8%, 7-year note on January 1, 2018. Broad Street must make payments of principal and interest every 6 months beginning June 30, 2018. The note will...
See AnswerQ: On March 31, 2018, Vine Company issued a $487
On March 31, 2018, Vine Company issued a $487,000, 2%, 3-year note payable when the market rate was 8%. Interest is due on each March 31, beginning March 31, 2019. The company’s fiscal year ends on De...
See AnswerQ: On January 1, 2018, Mill Road Corporation issued $300
On January 1, 2018, Mill Road Corporation issued $300,000 par value, 5%, 5-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the...
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