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Sunland Inc. issued $ 3 million of 1 0 - year, 9 % convertible bonds on June 1 , 2 0 2 3 , at
Sunland Inc. issued $ million of year, convertible bonds on June at plus accrued interest. The bonds were dated April with interest payable April and October Bond discount is amortized semiannually. Bonds without conversion privileges would have sold at plus accrued interest. On April $ million of these bonds were converted into common shares. Accrued interest was paid in cash at the time of conversion. Assume that the company follows IFRS. a Prepare the entry to record the issuance of the convertible bonds on June 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 for the amounts. Round answers to decimal places, eg List all debit entries before credit entries. tableDate Account Titles and ExplanationJune CashBonds PayableInterest PayableContributed Surplus Conversion Rights eTextbook and Media Assistance Used Prepare the entry to record the interest expense at October by prorating the number of months. Start by calculating the effective rate on the bonds using a financial calculator or Excel functions. Assume that interest payable was credited when the bonds were issued. Credit account titles are automatically indented when the amount is entered. If no entry is required, select No Entry" for the account titles and enter for the amounts. Do not indent manually. Round effective interest rate to decimal places, eg and final answers to decimal places, eg List all debit entries before credit entries. Date Account Titles and Explanation Debit Credit October
Sunland Inc. issued $ million of year, convertible bonds on June at plus accrued interest. The bonds were dated April with interest payable April and October Bond discount is amortized semiannually. Bonds without conversion privileges would have sold at plus accrued interest.
On April $ million of these bonds were converted into common shares. Accrued interest was paid in cash at the time of conversion. Assume that the company follows IFRS.
a
Prepare the entry to record the issuance of the convertible bonds on June 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 for the amounts. Round answers to decimal places, eg List all debit entries before credit entries.
tableDate Account Titles and ExplanationJune CashBonds PayableInterest PayableContributed Surplus Conversion Rights
eTextbook and Media
Assistance Used
Prepare the entry to record the interest expense at October by prorating the number of months. Start by calculating the effective rate on the bonds using a financial calculator or Excel functions. Assume that interest payable was credited when the bonds were issued. Credit account titles are automatically indented when the amount is entered. If no entry is required, select No Entry" for the account titles and enter for the amounts. Do not indent manually. Round effective interest rate to decimal places, eg and final answers to decimal places, eg List all debit entries before credit entries.
Date Account Titles and Explanation
Debit
Credit
October
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