On January 1, 2015, Xeon Co. issued 15-year callable and convertible bonds with a face value...

On January 1, 2015, Xeon Co. issued 15-year callable and convertible bonds with a face value of $2,000,000 and a stated interest rate of 10%, payable semiannually on July 1 and January 1. The bonds were sold to yield 12%.

Calculate the issue price of the bond in dollars
Calculate the issue price of the bonds as a percentage
Make the journal entry to record the issuance of the bond on January 1, 2015
Prepare the amortization table for the years 2015 & 2016
Make the journal entries for 2016
How much was the interest expense for 2016?
On December 31, 2016 $600,000 of the bonds were retired at 103. Make the journal entry to record the retirement
On December 31, 2016 $800,000 of bonds were converted into $2 par value common stock. Each bond is convertible into 100 shares of stocks. Make the journal entry to record the conversion

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Lassen Corporation issued 15 year term bonds on January 1, 2015 with a face value of...

Lassen Corporation issued 15 year term bonds on January 1, 2015 with a face value of $500,000. The face interest rate is 8 percent and interest is payable semi-annually on June 30 and December 31. The bonds were issued to yield an effective annual rate of 10 percent. a. Prepare Journal entry to record the sale of the bond b. Using the effective interest rate method, calculate and record the interest expense for year one c. Prepare the partial balance...

On January 1, 2015, Rex Co. issued 10-year bonds with a face value of $5,000,000 and...

On January 1, 2015, Rex Co. issued 10-year bonds with a face value of $5,000,000 and a stated interest rate of 12%, payable semiannually on June 30 and December 31. The bonds were sold to yield 10%. Calculate the issue price of the bond in dollars Calculate the issue price of the bonds as a percentage Make the journal entry to record the issuance of the bond on January 1, 2015

On January 1, 2015, Rex Co. issued 10-year bonds with a face value of $5,000,000 and...

On January 1, 2015, Rex Co. issued 10-year bonds with a face value of $5,000,000 and a stated interest rate of 12%, payable semiannually on June 30 and December 31. The bonds were sold to yield 10%. Prepare the amortization table for the years 2015, 2016 & 2017 Make the journal entries for 2017 How much was the interest expense for 2017?

On January 1, 2015, Rex Co. issued 10-year bonds with a face value of $5,000,000 and...

On January 1, 2015, Rex Co. issued 10-year bonds with a face value of $5,000,000 and a stated interest rate of 12%, payable semiannually on June 30 and December 31. The bonds were sold to yield 10%. On December 31, 2017 $400,000 of the bonds were retired at 95. Make the journal entry to record the retirement On December 31, 2017 $300,000 of the bonds were converted. Make the journal entry to record the retirement

On February 1, 2019, Ellison Co. issued 10 year callable bonds with a face value of...

On February 1, 2019, Ellison Co. issued 10 year callable bonds with a face value of $200,000,000and a stated interest rate of 6.6%, payable semiannually on July 1 and January 1. The bonds were sold to yield 6%. a. Calculate the issue price of the bonds. b. Record the issuance on February 1, 2019. c. Prepare the journal entries for the interest expense and payments for 2019, 2020, 2021, 2022 and 2023. (you will need to prepare amortization schedule) d....

On February 1, 2019, Ellison Co. issued nine-year callable bonds with a face value of $250,000,000...

On February 1, 2019, Ellison Co. issued nine-year callable bonds with a face value of $250,000,000 and a stated interest rate of 8.5%, payable semiannually on July 1 and January 1. The bonds were sold to yield 8%. Table values are: a. Calculate the issue price of the bonds. b. Record the issuance on February 1, 2019. c. Prepare the journal entries for the interest expense and payments for 2019, 2020, 2021, 2022 and 2023. (you will need to prepare...

On January 2, 2021, L Co. issued at face value $30,000 of 2% bonds convertible in...

On January 2, 2021, L Co. issued at face value $30,000 of 2% bonds convertible in total into 3,000 shares of L's common stock. No bonds were converted during 2021. Throughout 2021, L had 3,000 shares of common stock outstanding. L's 2021 net income was $12,000. L's income tax rate is 25%. No potential common shares other than the convertible bonds were outstanding during 2021. L's diluted earnings per share for 2021 would be:

On January 1, Soren Enterprises issued 15-year bonds with a face value of $200,000. The bonds...

On January 1, Soren Enterprises issued 15-year bonds with a face value of $200,000. The bonds carry a contract interest rate of 8 percent, and interest is paid semi-annually. On the issue date, the annual market interest rate for bonds issued by companies with similar riskiness was 10 percent. The issuance price of the bonds was $169,255. Which ONE of the following would be included in the journal entry necessary on the books of the bond issuer to record theSECOND...

Convertible Bonds: Complex Group issued 1,000 convertible bonds at January 1, 2015. The bonds have a...

Convertible Bonds: Complex Group issued 1,000 convertible bonds at January 1, 2015. The bonds have a 5-year term with a stated rate of interest of 7 percent and are issued at par with a face value of €1,000 per bond (the total proceeds received from issuance of the bonds are €1,000,000 – bonds with equity). Interest is payable annually at December 31. Each bond is convertible into 350 ordinary shares with a par value of €1. The market rate of...

On January 2, year 1, Parker Co. issued 6% bonds with a face value of $400,000...

On January 2, year 1, Parker Co. issued 6% bonds with a face value of $400,000 when the market interest rate was 8%. The bonds are due in ten years, and interest is payable every June 30 and December 31. Parker does not elect the fair value option for reporting its financial liabilities. Use the following present value and present value annuity tables to calculate the selling price of the bond on January 2, year 1. Round your final answer...

Subjects