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The following are unrelated transactions. Present the required entries to record each of the transactions. On March 1, 2020, Sandhill Corporation issued $200,000 of
The following are unrelated transactions. Present the required entries to record each of the transactions. On March 1, 2020, Sandhill Corporation issued $200,000 of 6% non-convertible bonds at 106, which are due on February 28, 2040. In addition, each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase one of Sandhill's no par value common shares for $50. The bonds without the warrants would normally sell at 94. Sandhill prepares its financial statements in accordance with IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Indigo Corp. issued $10,000,000 of par value, 7% convertible bonds at 96. If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 92. Indigo Corp. has adopted ASPE, and would like to explore all options available to report the convertible bond. (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.) Account Titles and Explanation Option 1: Residual Method Option 2: Value Equity component at zero eTextbook and Media List of Accounts Debit Credit
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