+1-415-670-9189
info@expertsmind.com
Unamortized balance in discount on bonds payable account
Course:- Financial Accounting
Reference No.:- EM131260151




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Accounting

On June 30, 2016, Kerr Industries had outstanding $40 million of 8%, convertible bonds that mature on June 30, 2017. Interest is payable each year on June 30 and December 31. The bonds are convertible into 2 million shares of $10 par common stock. At June 30, 2016, the unamortized balance in the discount on bonds payable account was $2 million. On June 30, 2016, half the bonds were converted when Kerr's common stock had a market price of $25 per share. When recording the conversion using the book value method, Kerr should credit paid-in capital – excess of par?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Accounting) Materials
Using the NPV, which projects should be accepted, considering the limit on funds available? Does the list of accepted projects change from Part 2? What is the opportunity cost
Highsmith Rental Company purchased an apartment building early in 2013. There are 20 apartments in the building and each is furnished with major kitchen appliances. The compan
The dollar-value LIFO method was adopted by Enya Corp. on January 1, 2014. Its inventory on that date was $263,440. On December 31, 2014, the inventory at prices existing on t
Larned Corporation recorded the following transactions for the just completed month. Record the above transactions in journal entries. $75,000 in raw materials were purchased
Record the journal entry for the depreciation expense on the overhauled engine for the remainder of 2006. Determine the book value of the engine on December 31, 2006.
Illustrate what is Ms. K's deductible loss from DKC for 2011, if she had $4,500 in income from other passive investments?
Stanton Corp. began operations on January 1, 2016. The statement of cash flows for the first year reported dividends paid of $221,000. The balance sheet at the end of the firs
Given the following information, projected benefit obligation (PBO) and fair market value (FMV) of plan assets for Lee Company. What amount of asset or liability will be rep