User Account

All Pages

Determine increase in share premium on issuance

Assignment Help Financial Accounting
Reference no: EM132885541

On January 1, 2018, a corporation issued P4,000,000 8% 8-year convertible bonds at 95. Interest is payable every December 31. As of this date, the effective interest rate of similar bonds is 10%. Without the conversion feature, the applicable interest rate to these bonds is 11%.

  • The bonds can be converted to 5 P20 par ordinary shares for every P1,000 bonds.
  • On January 1, 2021, before any investors can exercise the conversion option, the corporation decided to retire the bonds at 105. At this date, bonds without the conversion feature trade at 102.

Problem a: Determine:

(1) Gain (loss) on January 1, 2021 due to the pre-termination of bonds (if loss, enclose in parentheses or add a negative sign)

(2) Increase in share premium on issuance after the pre-termination on January 1, 2021

Reference no: EM132885541

Questions Cloud

Introduction To Global Health : What are the most important causes of women's death globally? What is the link between nutrition and women's health.
Anthropology Of Food Final Project : Food, memory, and family are inextricably tied to one another. The meals of our childhood can linger on well into adulthood.
Determine the increase in additional paid-in capital : Determine the increase in additional paid-in capital due to the debt restructuring. On January 1, 2020, a corporation is delinquent on a P3,000,000 note to bank
How the use of debt finance benefits the holders of equity : How the true cost of interest is calculated and illustrate with an example how the use of debt finance benefits the holders of equity in a business.
Determine increase in share premium on issuance : Determine Increase in share premium on issuance after the pre-termination on January 1, 2021 and Gain (loss) on January 1, 2021 due to pre-termination of bonds.
Identify which ledger accounts would need to be debited : Identify which ledger accounts would need to be debited and credited and with how much in order to correct each of these errors.
What is Ithaca depletion for Year : The estimated residual value $250,000. What is Ithaca's unit depletion rate? Assume Ithaca extracted 25,000 tons in Year 1. What is Ithaca's depletion for Year
Species richness and species evenness of community : Explain the differences between species richness and species evenness of a community.
Prepare a bank reconciliation as at april identifying : Adjust the cash book balance as necessary and prepare a bank reconciliation as at 30 April 2021 identifying the balance per the bank statement.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd