Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

please use the answer choices provided For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Blossom Corp.

please use the answer choices provided image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Blossom Corp. issued $21,800,000 par value 10% cormertible bonds at 99 . If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 95 . 2. Blue Company issued $21,800,000 par value 10% bonds at 98 . One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $4. 3. Suppose Sepracor. Inc. called its convertible debt in 2025. Assume the following related to the transaction. The 11%, $10,200,000 par value bonds were converted into 1,020,000 shares of \$1 par value common stock on July 1,2025, On July 1, there was $60,000 of unamortized discount applicable to the bonds, and the compary paid an additional $74,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method. (List all debit entries before credit entries. Cred it occount titles are outomatically indented when amount is entered, Do not indent manuilly. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Blossom Corp. issued $21,800,000 par value 10% cormertible bonds at 99 . If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 95 . 2. Blue Company issued $21,800,000 par value 10% bonds at 98 . One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $4. 3. Suppose Sepracor. Inc. called its convertible debt in 2025. Assume the following related to the transaction. The 11%, $10,200,000 par value bonds were converted into 1,020,000 shares of \$1 par value common stock on July 1,2025, On July 1, there was $60,000 of unamortized discount applicable to the bonds, and the compary paid an additional $74,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method. (List all debit entries before credit entries. Cred it occount titles are outomatically indented when amount is entered, Do not indent manuilly. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) 3. No. Account Titles and Explanation 1. Cash Discount on Bonds Payable Bonds Parabie 2. Cash Discount on Bonds Payable Bonds Payabie Paid in Capitalstock Warrants Debit Credit 218000 21800000 21582000 218000 2 21800000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions

Question

1 8 .

Answered: 1 week ago

Question

A 300N F 30% d 2 m Answered: 1 week ago

Answered: 1 week ago