{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-28T04:42:47-04:00", "answer_date": "2024-06-28 04:42:47", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4241321", "url": "\/study-help\/questions\/convertible-bond-22-in-2014-climber-corporation-issued-for-110-4241321", "question_creation_date_js": "2024-06-28T04:42:47-04:00", "question_creation_date": "Jun 28, 2024 04:42 AM", "meta_title": "[Solved] convertible bond 22. In 2014 Climber Corp | SolutionInn", "meta_description": "Answer of - convertible bond 22. In 2014 Climber Corporation issued for $110 per share, 18,000 shares of $100 par value convertibl | SolutionInn", "meta_keywords": "convertible,bond,22,2014,climber,corporation,issued,$110,per,share,18,000,shares", "question_title_h1": "convertible bond 22. In 2014 Climber Corporation issued for $110 per share, 18,000 shares of $100 par value convertible preferred stock. One share of preferred", "question_title": "convertible bond 22. In 2014 Climber Corporation issued for $110 per share,", "question_title_for_js_snippet": "convertible bond 22 In 2014 Climber Corporation issued for $110 per share, 18,000 shares of $100 par value convertible preferred stock One share of preferred stock may be converted into three shares of Climber's $30 par value common stock at the option of the preferred shareholder On December 31, 2015, all of the preferred stock was converted into common stock The market value of the common stock at the conversion date was $40 per share What amount should be credited to the common stock account on December 31, 2015 a $1,620,000 b $1 800,000 10 $1,318000 $1 960,000 23 On January 1 Hiro Corp issues 1,000 no par ordinary shares for 15 per share The shares have a stated vale of 65 per share When Hiro prepares the journal entry to record the issuance of the shares which of the following will be recorded a Debit Share Capital Ordinary 65,000 b Credit Share Capital Ordinary E15,000 c Debit Share Premium Ordinary E15,000 d Credit Share Premium Ordinary (10,000 24 Convertible bonds 3 have priority over other indebtedness b are usually secured by a first or second mortgage c pay interest only in the event earnings are sufficient to cover the interest d may be exchanged for equity securities 25 Corporations issue convertible debt for two main reasons One is the desire to raise equity capital that, assuming conversion, will arise when the original debt is converted The other is a theease with which convertible debt is sold even if the company has a poor credit rating b the fact that equity capital has is sue costs that convertible debt does not C that many corporations can obtain financing at lower rates d that convertible bonds will always sell at a premium 26 Convertible preference shares Are compound instruments with both a liability and an equity component b Indude an option for the holder to convert preference shares into a fixed number of ordinary shares Use the with and without method to value the compound instrument d All of the choices are correct 27 The conversion of preference shares into ordinary shares requires that any excess of the par value of the ordinary shares is sued over the carrying amount of the preference shares being converted should be a reflected currently in income b reflected currently in other comprehensive income treated as a prior period adjustment treated as a direct reduction of retained earnings, Column 1 Words 2028 Spell Check", "question_description": "

convertible bond <\/p>

\"image<\/div><\/div><\/div> 22. In 2014 Climber Corporation issued for $110 per share, 18,000 shares of $100 par value convertible preferred stock. One share of preferred stock may be converted into three shares of Climber's $30 par value common stock at the option of the preferred shareholder. On December 31, 2015, all of the preferred stock was converted into common stock. The market value of the common stock at the conversion date was $40 per share What amount should be credited to the common stock account on December 31, 2015? a $1,620,000 b. $1.800,000 10 $1,318000 $1.960,000 23 On January 1 Hiro Corp. issues 1,000 no-par ordinary shares for 15 per share. The shares have a stated vale of 65 per share. When Hiro prepares the journal entry to record the issuance of the shares which of the following will be recorded? a. Debit Share Capital-Ordinary 65,000. b. Credit Share Capital-Ordinary E15,000. c. Debit Share Premium-Ordinary E15,000 d. Credit Share Premium-Ordinary (10,000 24 Convertible bonds 3. have priority over other indebtedness. b. are usually secured by a first or second mortgage c. pay interest only in the event earnings are sufficient to cover the interest d. may be exchanged for equity securities. 25 Corporations issue convertible debt for two main reasons. One is the desire to raise equity capital that, assuming conversion, will arise when the original debt is converted. The other is a. theease with which convertible debt is sold even if the company has a poor credit rating b. the fact that equity capital has is sue costs that convertible debt does not. C. that many corporations can obtain financing at lower rates. d. that convertible bonds will always sell at a premium 26. Convertible preference shares . Are compound instruments with both a liability and an equity component. b. Indude an option for the holder to convert preference shares into a fixed number of ordinary shares. Use the \"with-and-without\" method to value the compound instrument d. All of the choices are correct. 27 The conversion of preference shares into ordinary shares requires that any excess of the par value of the ordinary shares is sued over the carrying amount of the preference shares being converted should be a. reflected currently in income b. reflected currently in other comprehensive income treated as a prior period adjustment. treated as a direct reduction of retained earnings, Column: 1 Words: 2028 Spell Check", "transcribed_text": "", "related_book": { "title": "Income Tax Fundamentals 2013", "isbn": "1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516", "edition": "31st Edition", "authors": "Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1124.jpg", "uri": "\/textbooks\/income-tax-fundamentals-2013-31st-edition-9781285586618", "see_more_uri": "" }, "free_related_book": { "isbn": "B09RM5HPKS", "uri": "\/textbooks\/grammas-well-being-weekly-medication-record-1st-edition-979-8410003490-264938", "name": "Grammas Well Being Weekly Medication Record", "edition": "1st Edition" }, "question_posted": "2024-06-28 04:42:47", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-13", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/prepare-budgets-multistep-income-statement-for-the-year-ended-march", "description": "Prepare Budgets multi-step income statement for the year ended March 31, 2015. 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