Prepare the amortization table as of the issuance date and, Ask an Expert

Accounting

Prepare the amortization table (as of the issuance date) and journal entries:

Bradley-Link issued a 10.6%, $100 million bond on 7/1/2009 at 110. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond was issued with 30 detachable stock warrants, each of which entitles the holder to purchase one share of the company's no par common stock for $40, beginning 2017. On the issuance date, the common stocks were traded in the market at $40 per sharem and the fair value of the warrants was $2 per share. The bonds are callable at 102 beginning in 2019 before the maturity date on Dec 31, 2021.

Notes:

- On December 31, 2016, the balance sheet included the following note: 10.6% nonconertible bond (net of unamortized discount or premium) $101,600,000

- When the common stock price reached $60 on July 5, 2017, 50% of the warrants issued with 10.6% bonds were exercised

- Use straight-line amortiztion

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92640896

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - in recent years a number of companies have gone

Question - In recent years a number of companies have gone into liquidation (been ‘wound up') because they have not been able to meet their liabilities when they fell due. In Australia, there are some well-publicised exa ...

Question - greg owns and operates an illegal gambling

Question - Greg owns and operates an illegal gambling establishment. In connection with this activity, he has the following expenses during the year: Rent - $28,000 Bribes - $80,000 Travel - $16,000 Utilities - $24,000 W ...

Question - lionel is an unmarried law student at state

Question - Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $24,000 from County Bank and paid interest of $1,440. Lionel used the loan proc ...

Question - lilly owns a hair dressing business she

Question - Lilly owns a hair dressing business. She purchases the following items for sole use in the hair dressing business: One special stand alone hairdryer on the 1st of July at a cost of $12,000. It has an estimated ...

Question - legacy issues 325000 of 5 four-year bonds dated

Question - Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 and their market rate is 8% at the issue date. Determ ...

You are preparing golf clubs financial reports for june

You are preparing Golf Club's financial reports for June 2017, and the 30 June 2017 bank statement has just arrived with the balance of $29,930. Currently, Golf Club's Cash account shows a balance of $30,690. Additional ...

Question - alpha corp had 15000 of dividends in arrears for

Question - Alpha Corp. had $15,000 of dividends in arrears, for cumulative, non-participating preferred stock as of January 1, 2018.This value of dividends in arrears was for the fiscal years of 2016 & 2017. During the f ...

Question - adams madison needs 252800 in 10 yearshow much

Question - Adams Madison needs $252,800 in 10 years. How much must he invest at the end of each year, at 12% interest, to meet his needs? Adams Fillmore's lifelong dream is to own his own fishing boat to use in his retir ...

Question - internet assignment search the internet an

Question - Internet Assignment Search the Internet (an entity's website) and find an audit report of the entity's audit of internal control over financial reporting. Determine the following: 1. Did the entity used the co ...

Have you ever been involved in the budget process at your

Have you ever been involved in the budget process at your organization? If so, describe your role and responsibilities. Do you think people at your level in the organization should provide budget inputs, and why or why n ...

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

Recent Questions

Ask Accounting Basics Expert