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On January 1 , 2 0 2 3 , Coronado Corporation, which follows IFRS, issued a series of 5 0 1 convertible bonds, maturing in
On January Coronado Corporation, which follows IFRS, issued a series of convertible bonds, maturing in five years. The
face amount of each bond was $ Coronado received $ for the bond issue. The bonds paid interest every December at
; the market interest rate for bonds with a comparable level of risk was The bonds were convertible to common shares at a rate
of ten common shares per bond. Coronado amortized bond premiums and discounts using the effective interest method, and the
company's yearend was December
On January of the bonds were converted into common shares. On June another bonds were converted into
common shares. The bondholders chose to forfeit the accrued interest on these bonds.
On January when the fair value of the bonds was $ due to a decrease in market interest rates, a conversion
inducement of $bond was offered to the remaining bondholders to convert their bonds to common shares. All of the remaining
bonds were converted into common shares at that time.
a Prepare the journal entry at January
b Prepare the journal entry at December
c Prepare the journal entry at January
d Prepare the journal entry at June
e Prepare the journal entry at December
f Prepare the journal entry at January
Round present value factor calculations to decimal places, eg and the final answer to decimal places eg Credit account
titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account
titles and enter O for the amounts. List all debit entries before credit entries.
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