Question
NEVERMIND. I CANT GET THE WHOLE QUESTION TO ADD. THE PICTURES WONT TAKE. SORRY FOR THE INCONVENIENCE. Bond Entries-Issuer On April 1, 2003, Rowe Tool
NEVERMIND. I CANT GET THE WHOLE QUESTION TO ADD. THE PICTURES WONT TAKE. SORRY FOR THE INCONVENIENCE.
Bond Entries-Issuer On April 1, 2003, Rowe Tool Company authorized the sale of $5,000,000 of 6% convertible bonds with interest payment dates of April 1 and October 1. The bonds were sold on July 1, 2003, and mature on April 1, 2023. The bond discount totaled $398,200. The bond contract entitles the bondholders to receive 20 shares of $1 par value common stock in exchange for each $1,000 bond. On April 1, 2013, the holders of bonds with total face value of $700,000 exercised their conversion feature. On July 1, 2013, Rowe Tool Company reacquired bonds, face value $600,000, on the open market. The balances in the equity accounts as of December 31, 2012, were: Market values of the common stock and bonds were as follows: Prepare journal entries on the issuer's books for each of the following transactions. (Use the straight-line amortization method for the bond discount.) Sale of the bonds on July 1, 2003. Interest payment on October 1, 2003. Interest accrual on December 31, 2003, including bond discount amortization for the six months since the bond issuance. Conversion of bonds on April 1, 2013. (Assume that interest and discount amortization are correctly shown as of April 1, 2013. No gain or loss on conversion is recognized.) Reacquisition and retirement of bonds on July 1, 2013. (Assume that interest and discount amortization are correctly reported as of July 1, 2013.) Hide If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar. 1. 2003, July 1 2. 2003, Oct. 1 3. 2003, Dec. 31 4. 2013, Apr. 1 5. 2013, July 1
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