Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On July 1, 2023, Tien Limited called its 10% convertible bonds for conversion. The $18,000,000 of par value bonds were converted into 1,800,000 common
On July 1, 2023, Tien Limited called its 10% convertible bonds for conversion. The $18,000,000 of par value bonds were converted into 1,800,000 common shares. On July 1, there was $75,000 of unamortized discount applicable to the bonds, and the company paid an additional $85,000 to the bondholders to induce conversion of all the bonds. At the time of conversion, the balance in the account Contributed Surplus-Conversion Rights was $250,000, and the bond's fair value (ignoring the conversion feature) was $17,955,000. The company records conversion using the book value method. Prepare the journal entries if Tien prepares its financial statements using IFRS and if it uses ASPE. (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.) a) IFRS: Account Titles and Explanation b) ASPE: Debit Credit Account Titles and Explanation Debit Credit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started