Question 20 Ar saved Marked out of 100 question THIS MULTIPLE CHOICE QUESTION (MCQ) IS BASED ON THE DOUGLAS COMPANY SCENARIO BELOW: DOUGLAS Company issued a Convertible Bond on 1 January 2019. The following information about the Convertible Bond is is available Face Value $800,000; Life: 4 years; Interest Annual on 31 December, issued at $07 per $100 Nominal Stated rate (coupon) 3% Assume an effective rate (Yield) of 4% (this is the rate on equivalent non-convertible bonds) Convertible Into: 50,000 Ordinary Shares with a par value of $1.25 each The Present Value (PV) Factor for [N-4 and Yield=4%) is 0.855. The Annuity Factor (N=4 and Yield-4%) 3.63 (use these EXACT figures in your calculations) MCQ TWENTY Assume the Bond is Converted into shares at the end of Year 4. On that date, what is the correct journal entry with respect to CASH Select one O a DEBIT $800,000 O b. DEBIT $782,000 O c. None of these answers d. NO JOURNAL ENTRY IS REQUIRED WITH RESPECT TO CASH. O DEBIT $803,350 Clear my choice