View Policies Current Attempt in Progress The following are unrelated transactions. Present the required entries to record each of the transactions. On March 1, 2020. Crane Corporation issued $350,000 of 5% 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 Crane's no par value common shares for $50. The bonds without the warrants would normally sell at 95. Crane prepares its financial statements in accordance with IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Account Titles and Explanation Activate Windows Go to Settings to activate A ENG ? ED - / 10 E Pronghorn Corp. issued $10,000,000 of par value, 6% convertible bonds at 96. If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 93. Pronghorn 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 for the amounts.) Account Titles and Explanation Debit Credit Option 1: Residual Method Option 2: Value Equity component at zero Activate Windows Go to Settings to achite Wind 14 2 di AENG 202 c C i arch Larkspur Limited issued $26,000,000 of par value, 4% bonds at 97. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $6. Larkspur Limited has adopted 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 for the amounts.) Account Titles and Explanation Debit Credit Option 1. Residual Method Option 2 Value Equity component at zero Activate Windows Go to Settings to activate ENG i C e to search On July 1, 2020. Tien Limited called its 6% convertible bonds for conversion. The $13,000,000 of par value bonds were converted into 1,300,000 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 $12,955,000. The company records conversion using the book value method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) a) IFRS: Account Titles and Explanation Debit Credit Activate Window Go to Settings to de de G 2 e o search b) ASPE: Account Titles and Explanation Debit Credit Activate Windo Go to Settings to acts 40 GA ED C arch On December 1, 2020, Horton Company issued 400 of its $1,000,7% bonds at 104. Attached to each bond was one detachable stock warrant entitling the holder to purchase 10 of Horton's common shares. On December 1, 2020, the fair value of the bonds, without the stock warrants, was 95. Horton Company 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 Activate Wir Go to Settings to Attempts: 0 of 1 used Submit Answer Save for Later O BA 0 el
