Question
On January 1, 2015, Ginseng Corp. issues $1,000 of 5% bonds which may be converted into total 1,000 shares of $1 par value ordinary shares.
On January 1, 2015, Ginseng Corp. issues $1,000 of 5% bonds which may be converted into total 1,000 shares of $1 par value ordinary shares. The market rate of interest is 7%. Interest is payable annually on December 31, and the bonds were issued at par. The maturity date is December 31, 2019.
Please answer the following questions.
(1) Prepare the journal entry on January 1, 2015, based on US GAAP and IFRS, respectively.
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Cost Accounting Theory And Practice
Authors: Bhabatosh Banerjee
13th Edition
9788120349087
