User Account

All Pages

What is the gain or loss on the conversion of the bonds

Assignment Help Accounting Basics
Reference no: EM132643030

Question - On June 30, 2012, the original issue date, Sellers Inc. purchased P500,000 of 10-year 12% convertible bonds at 104. The bonds are convertible into 50 shares of P10 par value ordinary shares for each P1,000 bond. The interest is payable semi-annually on June 30 and December 31. On March 31, 2013, Sellers Inc. converts P300,000 of the bonds. On March 31, 2013, the market price of the ordinary shares is P30 per share.

Required -

a) Prepare entries related to the convertible bonds for the year 2012-2013.

b) What is the gain or (loss) on the conversion of the bonds?

Reference no: EM132643030

Questions Cloud

What is multifactor authentication : What is multifactor authentication and what are some examples? List 5 reasons to turn on multifactor authentication?
What is the probability of having high blood pressure : If high blood pressure is defined as 140 mmHg or greater, what is the probability of having high blood pressure?
Discusses all issues relative to administrative law : Your supervising attorney has asked you to prepare a memo that identifies and discusses all issues relative to administrative law.
What is the correctly valued offer price : The current market value of Tanus Corporation's equity is $90 million. What is the correctly valued offer price
What is the gain or loss on the conversion of the bonds : Sellers Inc. purchased P500,000 of 10-year 12% convertible bonds at 104. What is the gain or (loss) on the conversion of the bonds
Difference between relative poverty and absolute poverty : Describe the difference between Relative Poverty, Absolute Poverty, and Subjective Poverty. After defining these terms and understanding poverty in our country.
Summarize hands-on experience with bootstrap : Summarize your hands-on experience with Bootstrap / CSS experience. Explain Angular core concepts (forms, guards, interceptors, routing-component communication)
Describe type of treatment on types of counseling therapies : Students will choose counseling situation/problem and describe how to treat it (in counseling). Pick a problem, pick a theory to guide how the problem is viewed
Make a bank reconciliation using the adjusted balance method : Make a bank reconciliation using the adjusted balance method. Compute for the Adjusted cash balance as of December 31, 2020

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