Coastalview Imaging Ltd issued $3,300,000 of 6 notes payable on December 31, 2010, at a price of 95 The notes term to maturity is 20 years After four years, the notes may be converted into Coastalview common stock Each $1,000 face amount of notes is convertible into 50 shares of $1 par common stock...

Req 1 Initial carrying amount of notes 3300000 095 3135000 Plus Amortization of notes De ...

Coastalview Imaging Ltd. issued $3,300,000 of 6% notes payable on December 31, 2010, at a price of

Question:

Coastalview Imaging Ltd. issued $3,300,000 of 6% notes payable on December 31, 2010, at a price of 95.
The notes term to is 20 years. After four years, the notes may be converted into Coastalview common stock. Each $1,000 face amount of notes is convertible into 50 shares of $1 par common stock. On December 31, 2015, note holders exercised their right to convert all the notes into common stock.

Requirements
1. Without making journal entries, compute the carrying amount of the notes payable at December 31, 2015, immediately before the conversion. Coastalview Imaging Ltd. uses the straight-line method to amortize bonds.
2. All amortization has been recorded properly. Journalize the conversion transaction at December 31, 2015.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...