Assume the same information in IFRS16-11, except that Angela Corporation converts its convertible bonds on January 1,

Question:

Assume the same information in IFRS16-11, except that Angela converts its convertible bonds on January 1, 2012.
Instructions
(a) Compute the carrying value of the bond payable on January 1, 2012.
(b) Prepare the journal entry to record the conversion on January 1, 2012.
(c) Assume that the bonds were repurchased on January 1, 2012, for $1,940,000 cash instead of being converted. The of the liability component of the convertible bonds on January 1, 2012, is $1,900,000. Prepare the journal entry to record the repurchase on January 1, 2012.

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