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For each of the transactions described below, present the entry(ies) required to record each transaction. 1.Coyle Corp. issued $10,000,000 par value 10% convertible bonds at
For each of the transactions described below, present the entry(ies) required to record each transaction. 1.Coyle Corp. issued $10,000,000 par value 10% convertible bonds at 99. If the bonds had not been convertible, the companys investment banker estimates they would have been sold at 95. Expenses of issuing the bonds were $70,000. 2.Lambert Company issued $10,000,000 par value 10% bonds at 98. One detachable stock warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $4. 3.Sepracor, Inc. called its convertible debt in 2012. Assume the following related to the transaction: The 11%, $10,000,000 par value bonds were converted into 1,000,000 shares of $1 par value common stock on July 1, 2012. On July 1, there was $55,000 of unamortized discount applicable to the bonds, and the company paid an additional $75,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method
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