On March 1, 2018, the Miner Company received authorization to issue $160,000 in debentures. The bonds...

On March 1, 2018, the Miner Company received authorization to issue $160,000 in debentures. The bonds have a stated interest rate of 6%, and they mature in ten years. Interest is payable each February 28^th and August 31^st. On October 31, 2021, Miner issued 90 of the bonds and received cash from the lender in the total amount of $98,500.

Then, on May 1, 2025, the bondholders converted the bonds into 8,800 shares of Miner’s $10 par common stock. Miner paid all interest due to May 1^st in cash.

Miner has a fiscal year-end that ends on each June 30^th. Prepare ONLY those journal entries that the company would make with relating to the bonds on MARCH 1, 2018, OCTOBER 31, 2021, FEBRUARY 28, 2022, and MAY 1, 2025.

Solutions

Expert Solution

Hey learner! if you have any doubt regarding this answer feel free to ask me so that i can help you better.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Glover Industries received authorization on December 31, year 1, to issue $5,000,000 face value of 8%,...

Glover Industries received authorization on December 31, year 1, to issue $5,000,000 face value of 8%, 10-year bonds. The interest payment dates are June 30 and December 31. All the bonds were issued at par, plus accrued interest, April 1, Year 2. The bonds are callable by glover Industries at any time at 102. 1 Prepare the journal entry to record issuance of the bonds on April 1, Year 2. 2 Prepare the journal entry to record the first semiannual...

On March 1, 2018, Greenway Corporation issued 5% bonds dated January 1, 2018 with a par...

On March 1, 2018, Greenway Corporation issued 5% bonds dated January 1, 2018 with a par value of $1,000,000. The bonds were sold for the present value of the bonds on March 1, 2018 plus two-month accrued interest. The bonds mature on December 31, 2023. Interest is paid semiannually on Jun 30 and December 31. Greenway's fiscal year ends on December 31 each year. The effective interest rate is 7%. Required: a. Determine the present value the bonds on...

TREATMENT OF CONVERTIBLE DEBENTURES LS Limited issued 1 million six-year debentures on 1 January 2018 at...

TREATMENT OF CONVERTIBLE DEBENTURES LS Limited issued 1 million six-year debentures on 1 January 2018 at par value of £ 100 each at a fixed rate of 6% per annum. Interest payable at the end of each year whereas the principal is to be repaid in two equal installments at the end of 2022 and 2023. Debentures were issued with an option to convert 10 debentures into 4 ordinary shares of LS Limited till the date of first principal redemption....

a. On January 1, Year 1, Jones Company issued bonds with a $160,000 face value, a...

a. On January 1, Year 1, Jones Company issued bonds with a $160,000 face value, a stated rate of interest of 8.5%, and a 5-year term to maturity. The bonds were issued at 97. Interest is payable in cash on December 31st of each year. The company amortizes bond discounts and premiums using the straight-line method. What is the amount of interest expense shown on Jones' income statement for the year ending December 31, Year 1? b. On January 1,...

On April 1, 2018, Western Communications, Inc., issued 12% bonds, dated March 1, 2018, with face...

On April 1, 2018, Western Communications, Inc., issued 12% bonds, dated March 1, 2018, with face amount of $32 million. The bonds sold for $31.3 million and mature on February 28, 2021. Interest is paid semiannually on August 31 and February 28. Stillworth Corporation acquired $32,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31, and both firms use the straight-line method. Required: 1. Prepare the journal entries to record (a) issuance of...

On July 1, 2018, The Shepard Company purchased the following securities: 500 debentures (6% interest) of...

On July 1, 2018, The Shepard Company purchased the following securities: 500 debentures (6% interest) of Tatum Incorporated for $520,200 690 common shares of Cook Ltd. for $167,400 4,000 common shares of Green Co. for $504,900 850 preferred shares of Frisbee Corp. for $76,500 2,000 common shares of Kelly, Inc. for $212,700 Shepard acquired 5% of Kelly’s outstanding shares, 10% of Frisbee’s preferred stock, and 8% of Cook’s common stock. Shepard’s investment in Tatum’s securities will mature in nine years....

On January 1, 2018, Brussels Inc. will issue $5,000,000 in bonds that mature in ten years....

On January 1, 2018, Brussels Inc. will issue $5,000,000 in bonds that mature in ten years. The bonds have a stated interest rate of 10% and will pay interest every June 30 and December 31 of each year. Brussels will adopt the straight line amortization method for calculating interest charges per year. REQUIRED: 1. What is the annual interest expense Brussels will have to pay in cash each year? 2. Calculate the cash proceeds of the bond sale if the...

On January 1, 2018, Bringham Company issues $600,000, 10-year, 6%, semi-annual bonds. On the issue date,...

On January 1, 2018, Bringham Company issues $600,000, 10-year, 6%, semi-annual bonds. On the issue date, the market rate is 8%. REQUIRED: 1. Determine the amount of cash received from the Issuance of the Bond. 2. Prepare the Journal Entry to record the Issuance of the Bond 3. Prepare the Journal Entry for the first semi-annual Interest Payment AND Amortization of the Bond Discount or Premium using the Straight-Line Method of Amortization. 4. Prepare the Journal Entry for the second...

1. What is the present value of $160,000 to be received in 9 years from today?...

1. What is the present value of $160,000 to be received in 9 years from today? Assume a per annum discount rate of 9%, compounded annually. (Round to the nearest penny, e.g. 1234.56) Answer: 2. You just purchased a parcel of land for $73,000. To earn a 14% annual rate of return on your investment, how much must you sell the land for in 5 years? Assume annual compounding. (Round to the nearest penny, e.g. 1234.56) Answer: Earnest T needs...

On March 1, 2018, Piper Co. issued 10 year bonds with a face value of $5,000,000...

On March 1, 2018, Piper Co. issued 10 year bonds with a face value of $5,000,000 and a stated rate of 10% payable semiannually on September 1 and March 1. The bonds were sold to yield 8%. Piper Co. fiscal year end is December 31. a) Complete the amortization schedule for the dates indicated using the effective-interest method. Round all answers to the nearest dollar). March 1,2018 September 1,2018 March 1,2018 b) Prepare the adjusting entry for December 31,2018. Use...

Subjects