6. Sheridan Corporation sold 160 convertible, 10-year bonds with face value $ 160,000. The bonds pay interest December 31 each year. Each bond pays 3% annual interest and each bond can be converted to ten common shares at the bondholders request. The sale resulted in conversion rights of $ 24,710. On January 1, 2021, Sheridan offered the shareholders a price of 106 if they would agree to retire their bonds early. All of the bondholders agreed to retire their bonds early. At the time of the conversion, the market value of the bonds was $ 143,300 and the carrying value was $ 140,000. Prepare the journal entry to record the conversion of the bonds into common shares.

7. Sunland Capital Ltd. issued 620 $ 1,000 bonds at 102. After issuance, similar bonds were sold at 96. Assume that Sunland Capital Ltd. follows ASPE and valued the debt component of the instruments first, applying the residual to the equity component. On a date when the bonds had a carrying value of $ 602,000 and fair value of $ 604,650, Sunland paid $ 650,000 in cash to the bondholders to retire the bonds early. Record the retirement using the book value method.

8. On March 15, 2020, Concord Corporation entered into a forward contract with the local bank to purchase 86,000 (RMB) for $16,340 Canadian dollars in two months time. On March 31, Concords year-end, the fair value of the forward contract (representing the present value of the contracts future cash flows) was $490. Prepare the journal entries on March 15 and March 31, 2020.

9. Pina Corporation sold 260 convertible, 10-year bonds at par for $260,000. Each bond pays 5% annual interest and each bond can be converted to ten common shares at the bondholders request. When the bonds were issued common shares were trading for $11 per share. The market rate of interest for similar bonds without conversion rights was 7%. Prepare the journal entry to record the issuance of the bonds.

10. Blossom Capital Ltd. issued 460 $ 1,000 convertible bonds at 103. The instruments have now been converted. Assume that Blossom Capital Ltd. follows ASPE, and that all of the proceeds were allocated to the debt component upon initial recognition. At the time of conversion, the unamortized bond premium was $ 10,200, and the common shares had a fair value of $ 47 per share. Record the conversion using the book value method.