FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On July 1, 2022, LocoCoco Inc. issued $5 million of 8% convertible bond at 97 plus accrued interest, which are due on April 1, 2032.

On July 1, 2022, LocoCoco Inc. issued $5 million of 8% convertible bond at 97 plus accrued interest, which are due on April 1, 2032. The bonds were dated April 1, 2022. Interest was payable semi-annually, on April 1 and October 1. Bonds without conversion rights would have sold at 94 plus accrued interest. The company follows IFRS.


What is the entry to record the issuance of the convertible bonds on July 1, 2022?

Step by Step Solution

★★★★★

3.41 Rating (148 Votes )

There are 3 Steps involved in it

Step: 1

Answer The entry to record the issuance of the convertible bonds on July 1 2022 would ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 2

Intermediate Accounting Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

13th Canadian Edition

1119740444, 9781119740445

More Books

Students also viewed these Accounting questions

Question

★★★★★
ABC Inc issued $6 million of 10-year, 9% convertible bonds on June 1, 2018. These bonds were issued at 98 plus accrued interest. The bonds were dated April 1, 2018, with interest payable April 1 and...

Answered: 1 week ago

Question

★★★★★
Daisy Inc. issued $6 million of 10-year, 9%, convertible bonds on June 1, 2014, at 98 plus accrued interest. The bonds were dated April 1, 2014, with interest payable April 1 and October 1. Bond...

Answered: 1 week ago

Question

★★★★★
Daisy Inc. issued $6 million of 10-year, 9% convertible bonds on June 1, 2017 at 98 plus accrued interest. The bonds were dated April 1, 2017, with interest payable April 1 and October 1. Bond...

Answered: 1 week ago

Question

★★★★★
Is this a confined or unconfined aquifer? Please explain. 100 m amsl 78 m amsl 56 m amsl 48 m amsl A 50 m 11m B Clay Sand Clay 100 m

Answered: 1 week ago

Question

★★★★★
Design an experiment to measure the constants C and n in Chvorinov's rule [Eq. (5.11)].

Answered: 1 week ago

Question

★★★★★
Goods in Transit Collin Wholesale sold $2,500 inventory to Jennifer Company on December 27, year 1, with shipping terms of FOB destination. The inventory arrived on January 2, year 2. Which company...

Answered: 1 week ago

Question

★★★★★
2. Place mini-exhibits of student work at local grocery stores, libraries, or community centers.

Answered: 1 week ago

Question

★★★★★
Jerry Goff, president of Harmony Electronics, was concerned about the end-of-the-year marketing report that he had just received. According to Emily Hagood, marketing manager, a price decrease for...

Answered: 1 week ago

Question

★★★★★
2- An analyst has compiled the following information about Steller Corp. (in million) Income Statement Partial balance sheet Net sales 1,000 Current Liabilities 30 COGS 600 Long term debt 240 SG&A...

Answered: 1 week ago

Question

★★★★★
Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. Following is the company's unadjusted trial balance as of December 31, 2021....

Answered: 1 week ago

Question

★★★★★
Question 4: Any three distinct complex numbers Z1, Z2, Z3 determine a circle or straight line C. Prove that z and Z are inverse relations for C if and only like C P(Z, Z1, Z2, Z3) = P(Z, Z1, Z2, Z3)...

Answered: 1 week ago

Question

★★★★★
Question 1: A large domestic airport handles 90 take-offs per hour. For take-off, an aircraft leaves the gate, taxies for some distance and awaits its turn on the runway. Average time spent by an...

Answered: 1 week ago

Question

★★★★★
A bond has a yield to maturity ( YM ) of 5 % , with a maturity of 3 0 years, the coupon payment is 2 5 dollars paid semi - annually. Given that the PAR of the bond is $ 1 , 0 0 0 what is the price of...

Answered: 1 week ago

Question

★★★★★
Question 3 d) Your friend Rochelle has launched an online store to sell framed photos of kittens to cat lovers all around the world. Rochelle is worried about some aspects of eCommerce - specifically...

Answered: 1 week ago

Question

★★★★★
Question 2 There have been some misinterpretations on the similarities and differences of the concepts; management, leadership and administration. Compare and contrast leadership, management and...

Answered: 1 week ago

Question

★★★★★
You are trying to select between four online Help Desk plans from the Geek Squad. The Black Belt plan costs $29.95 / month plus $1 / online response, the Brown Belt plan costs $19.95 / month plus $3...

Answered: 1 week ago

Question

★★★★★
Rodriguez Company pays $379,080 for real estate with land, land improvements, and a building. Land is appraised at $192,000; land improvements are appraised at $72,000; and a building is appraised at...

Answered: 1 week ago

Question

★★★★★
The population of Detroit, Michigan, decreased from 1,027,974 in 1990 to 688,701 in 2013 (Source: U.S. Census Bureau). Find the average rate of change in the population of Detroit, Michigan, over the...

Answered: 1 week ago

Question

★★★★★
Somerton Corporation had two issues of securities outstanding: common shares and a 6% convertible bond issue in the face amount of $6 million. Interest payment dates of the bond issue are June 30 and...

Answered: 1 week ago

Question

★★★★★
You are compiling the consolidated financial statements for Vu Corporation International (VCI), a public company. The corporations accountant, Timothy Chow, has provided you with the following...

Answered: 1 week ago

Question

★★★★★
Spencer Ltd. established a SARs program on January 1, 2023, that entitles executives to receive cash at the date of exercise (any time in the next three years) for the difference between the shares...

Answered: 1 week ago

Question

★★★★★
2. Members of two student organizations study a word list while listening to music. The psychology honor society studies while classical music is played, and the running club while techno music is...

Answered: 1 week ago

Question

★★★★★
Social psychologists often use participant observation, placing themselves in real situations to understand a social phenomenon better. This strategy helps them plan research that will test the...

Answered: 1 week ago

Question

★★★★★
Measurement validity is the degree to which some measure predicts what it is supposed to, such as the degree to which an IQ test predicts school grades.

Answered: 1 week ago

Previous Question Next Question