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On January 2 2011, Company issued 10 year convertible bonds at 106. At that date, cash proceeds from the issuance of the convertible bonds should
On January 2 2011, Company issued 10 year convertible bonds at 106. At that date, cash proceeds from the issuance of the convertible bonds should be reported as
1. liability
2. equity
3. equity for the portion of proceeds above the face amount and a liability for the face amount of the bonds.
4. equity for the portion of the proceeds attributable to the conversion feature and as a liability for the balance.
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