What the entry to record the bond conversion on january

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On January 1, 2018, DIAS COMPANY issued 3-year, 4,000 convertible bonds at face value of P1,000 per bond. Interest is to be paid annually beginning January 1, 2018 at the stated coupon rate of 6%. Each bond is convertible, at the holder's option, into 200 P2 par value ordinary shares at any time up to maturity. On the date of issuance, the prevailing market interest rate for similar debt without the conversion privilege was 9%. On the same date, the market price of one ordinary share was P3. The bonds were converted on January 1, 2020

Problem 1. The liability component of the convertible debt is?

Problem 2. The equity component of the convertible debt is?

Problem 3. The interest expense to be reported on Dias Company's income statement for the year ended December 31, 2019, is?

Problem 4. The entry to record the bond conversion on January 1, 2020, should include a credit to share premium - issuance of?

Reference no: EM132883065

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