Reference no: EM132960503
Question - On January 1, 2019, a company issued 8% convertible 5-year bonds with a face value of P5,000,000 at 98. Each P5,000 bond can be converted into 20 ordinary shares with a par value of P150. On the same date, similar debts without the conversion feature can be sold at an issue price reflecting a market interest rate of 10%. Interest on the bonds is payable annually every December 31. On September 30, 2019, conversion on 60% of the P5,000,000 bonds was exercised.
The company also incurred costs in the conversion amounting to P250,000 which were paid in cash. Accrued interest, similarly, was paid in cash.
Applicable present value factors are as follows:
PV factor of 8% for 5 periods - 0.68
PV factor for an annuity of 5 at 8% - 3.99
PV factor of 10% for 5 periods - 0.62
PV factor for an annuity of 5 at 10% - 3.79
(1) Determine the Share premium related to conversion as of January 1, 2019?
(2) Determine the Carrying amount of the bonds as of January 1, 2019?
(3) Determine the Increase in share premium as a result of the conversion on September 30, 2019?
(4) Determine the Carrying amount of the bonds as of December 31, 2019?
|
Identify a workplace and occupation
: Choose one of the hazards category (Biological, Chemical, physical, ergonomic, psychosocial) hazard:
|
|
CIS 515 Database Modeling and Normalization Assignment
: CIS 515 Strategic Planning For Database Systems Assignment - Database Modeling and Normalization, Strayer University, USA - Analyze the risks that can occur
|
|
What is the rebate expense and liability
: During 2021, 4,000,000 packages of light bulbs are sold, and 190,000, $2 rebates were mailed to customers. What is the rebate expense and liability
|
|
What is Avicorp pre-tax cost of debt
: Problem - Avicorp has a $11.4 million debt issue outstanding, with a 6.1% coupon rate. What is Avicorp pre-tax cost of debt
|
|
Determine the Carrying amount of the bonds as of January
: The company also incurred costs in the conversion amounting to P250,000 which were paid in cash. Determine the Carrying amount of the bonds as of January
|
|
Determine the rate of depreciation
: A company purchased a machinery for rs.12,000. It's useful life is 10 years and the scrap value is rs 1,200. Determine the rate of depreciation
|
|
Prepare the journal entry at the end
: Assuming that it is more likely than not that $20,400 of the deferred tax asset will not be realized, prepare the journal entry at the end
|
|
What journal entry would this firm makes on June
: On December 31, 2020, a firm issued a $200 million 3.00% Senior Notes due on December 31, 2022. What journal entry would this firm makes on June
|
|
Compensation structures disadvantage women
: Is it fair to say that compensation structures disadvantage women? Explain.
|