User Account

All Pages

Prepare the journal entry on the date of issuance of bonds

Assignment Help Accounting Basics
Reference no: EM133139422

Question - Precision Drilling Inc., which follows IFRS, offers ten-year, 4% convertible bonds with a par value of $1,000,000. Interest is paid annually on the bonds. Each $1,000 bond may be converted into 20 common shares, which are currently trading at $17 per share. Similar straight bonds carry an interest rate of 5%. The bonds are issued at 102.

Required -

a) Assume Precision Drilling Ltd. decides to use the residual method to measures the debt. Prepare the journal entry on the date of issuance of the bonds.

b) Assume that after six years, the issuer of the bond, with the consent of the bondholders, decided to execute the conversion and offer no additional cash. The carrying amount of the bonds was $933,757. Prepare the journal entry to record the conversion.

c) How many shares were issued at the conversion?

Reference no: EM133139422

Questions Cloud

Explain the basic purpose of a database : xplain the basic purpose of a database (DB) as well as the costs and benefits to the management of wine company
Realigning HR Practices at Egan Clothiers : What are the pros and cons of Egan's performance appraisal system? Do you think it identifies the best employees?
Impact of a global marketplace on total rewards : Exhibit 16.1 shows how people get paid around the world depends on variations from four general aspects, such as economic, institutional, organizational, and em
What ae the other methods to find base pay : What ae the other methods to find base pay
Prepare the journal entry on the date of issuance of bonds : Assume Precision Drilling Ltd. decides to use the residual method to measures the debt. Prepare the journal entry on the date of issuance of the bonds
Discover the mean employee productivity for company : In a benchmarking study comparing your employee productivity to that of your closest competitor, you discover that the mean employee productivity for each compa
Most important clause in a hotel contract : In your opinion, what is the most important clause in a hotel contract? Why?
Industrial dispute case hero honda : Once again Gurgaon has become the center of workers' unrest following the strike at Hero Honda's Gurgaon plant. Around 4,000 casual workers of Hero Honda were o
Determine total conversion costs for the year : Sentiments, Inc., is a greeting card manufacturer. The following selected cost data is for the year ended December 31. Determine total conversion costs

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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