Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

problem: Counter Corporation issued $1,500,000 of convertible ten year bonds on July 1, 2007. The bonds provide for 12 percent interest payable semiannually on January 1 & July 1. The discount in connection with the issue was $34,000, which is being amortized monthly on a straight line basis. The bonds are convertible after 1-year into 8 shares of Counter Corporation's $100/value common stock for each dollar 1,000 of bonds. On August 1, 2008, $150,000 of bonds was turned in for conversion into common. Interest has been accrued monthly & paid as due. At present conversion any accrued interest on bonds being converted is paid in cash. Suggestion: (LO 1) Instructions (Give your answer to nearest dollar) Make journal entries to record the conversion, amortization, & interest in connection with the bonds as of the given dates.

[A] August 1, 2008. [Suppose the book value method is used.]

[B] August 31, 2008.

[C] December 31, 2008, including closing entries for end of year.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M923431

Have any Question? 


Related Questions in Accounting Basics

Oregon corporation has filed a voluntary petition to

Oregon Corporation has filed a voluntary petition to reorganize under Chapter 11 of the Bankruptcy Reform Act. Its creditors are considering an attempt to force liquidation. The company currently holds cash of $13,000 an ...

Capital rationingthe availability of funds effects the

Capital Rationing The availability of funds effects the capital budgeting decisions. The amount of funds available for capital expenditures will be either limited or unlimited. Funds would be considered unlimited when a ...

Ecampus accounting cycle paperaccounting cycle paper-

eCampus Accounting Cycle Paper Accounting Cycle Paper- Assessment Activity- Write a 700- 1,050-word paper including the following: · The purpose of accounting and financial reporting within your organization or an organi ...

Accounting amp the regulatory environmentin the wake of the

Accounting & The Regulatory Environment In the wake of the accounting and finance scandals of the early 2000s, the regulatory environment for businesses changed dramatically to create more accountability and transparency ...

Assignment - perform the calculations using the financial

Assignment - Perform the calculations using the financial statements from their individual companies. Part I - Complete the following: Perform at least one profitability ratio to measure the income and operating success ...

Classification of liabilities presented below are various

(Classification of Liabilities) Presented below are various account balances of K.D. Lang Inc. (a) Unamortized premium on bonds payable, of which $3,000 will be amortized during the next year. (b) Bank loans payable of a ...

Explain the purpose of the cost of sales adjustment in the

Explain the purpose of the cost of sales adjustment in the profit and loss account. Include a worked example in your explanation.

Individual case study assignmentcash flow forecasts and

Individual Case Study Assignment Cash flow forecasts and projected financial statements For the following Individual Case Study, you assume the role of someone who has been asked to provide a Business Report for a group ...

Questionthato and mdeva were in partnership and traded as

QUESTION: Thato and Mdeva were in partnership and traded as LEPARA Traders and shared profits/losses in the ratio of 5:3 respectively. Thato and Mdeva decided to admit Lenyora to the partnership. The following informatio ...

Practice questionsthe following transactions have taken

Practice questions: The following transactions have taken place in a business. Enter the name of the balance sheet item(s) affected under the appropriate column and indicate whether there has been an increase or decrease ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate