On 1 January 2018, Bae Limited issued a convertible bond with a par value of $100,000 for $120,000.
The bonds are convertible into 12,000 ordinary shares of Jan.
The bond has a 5-year life with a stated interest of 10% per annum. Interest
payment is made each year on 31 December, starting from 31 December 2018.
The market interest rate on 1 January 2018 for a similar non-convertible bond is
8% per annum.
On 1 January 2018, the liability component of the bond is computed to be $107,986.
On 31 December 2019, after the interest has been recorded, Jan Limited
repurchases the bond for $111,000 cash. At that time the fair value of the liability component is $108,000.
Date
Cash paid. Interest expense. Premium amortised Carrying amount of liability
1 January 2018. $107,986
31 December 2018 $10,000 $8,639 $1,361 $106,625
31 December 2019. $10,000. $8,530 $1,470 $105,155
1.Prepare the journal entry to record the issuance of the convertible bond on 1 January 2018.
2. Calculate the loss on repurchase for the liability component of the bond on 31 December 2019.
3. Calculate the adjustment on the equity component of the bond on 31 December 2019.
4. Prepare the journal entries to record the repurchase of bonds on 31 December 2019.
In: Accounting
|
Cash |
36,000 |
2,000 |
|
Accounts receivable |
21,000 |
39,000 |
|
Inventory |
5,700 |
49,000 |
|
Supplies |
2,500 |
3,000 |
|
65,200 |
93,000 |
|
|
Land |
1,100,000 |
800,000 |
|
Building |
1,150,000 |
900,000 |
|
Accumulated depreciation – building |
(276,000) |
(180,000) |
|
Vehicles |
15,000 |
28,000 |
|
Accumulated depreciation – vehicles |
(3,600) |
(5,600) |
|
1,985,400 |
1,542,400 |
|
|
$2,050,600 |
$1,635,400 |
|
|
Accounts payable |
38,000 |
49,000 |
|
Dividends payable |
25,000 |
1,300 |
|
Current bank loan |
55,000 |
55,000 |
|
118,000 |
105,300 |
|
|
Non-current bank loan |
1,700,600 |
1,320,100 |
|
1,818,600 |
1,425,400 |
|
|
Common shares |
120,000 |
100,000 |
|
Retained earnings |
112,000 |
110,000 |
|
232,000 |
210,000 |
|
|
$2,050,600 |
$1,635,400 |
During 2018 the following occurred:
In: Accounting
Find a recent (last 30 days) article that deals with one of this week’s economic concepts. Provide an analysis of the concept and how it was demonstrated within the article. (1 page summary.)
Include Article link, no less than 250 words in length, make at least one reference to your text or other course materials and provide in-text citations. As you reference information from a source, be sure to provide APA citations in text and at the end of your post.
In: Economics
Decide whether each pair of elements in the table below will
form an ionic compound. If they will, write the empirical
formula and name of the compound formed in the spaces
provided.
|
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In: Chemistry
A 8.024 gram sample of an organic compound
containing C, H and O is analyzed by combustion analysis and
20.75 grams of CO2 and
4.248 grams of H2O are produced.
In a separate experiment, the molar mass is found to be
136.2 g/mol. Determine the empirical formula and
the molecular formula of the organic compound.
Enter the elements in the order C, H, O
| empirical formula = |
| molecular formula = |
In: Chemistry
The compound known as butylated hydroxytoluene, abbreviated as BHT, contains carbon, hydrogen, and oxygen. A 1.376 g sample of BHT was combusted in an oxygen rich environment to produce 4.122 g of CO2(g) and 1.350 g of H2O(g). Insert subscripts below to appropriately display the empirical formula of BHT.
Insert subscripts below to appropriately display the empirical formula of BHT
CHO
In: Chemistry
A 2.335 gram sample of an organic compound containing C, H and O is analyzed by combustion analysis and 5.030 grams of CO2 and 2.060 grams of H2O are produced. In a separate experiment, the molar mass is found to be 102.1 g/mol. Determine the empirical formula and the molecular formula of the organic compound.
Enter the elements in the order C, H, O
empirical formula =
molecular formula =
In: Chemistry
Mass of empty crucible and cover: 20.74 g
Mass of crucible, cover, and final product: 21.17 g
In: Chemistry
6) Evidence on IPO underpricing is provided in several empirical studies, including a seminal paper by Loughran and Ritter (2004). 7) On average, IPOs traded at a premium and one reason can be underpricing of IPO at the offer time. Briefly discuss whether this result is consistent with previous empirical studies (Loughran and Ritter (2004)about IPO traded at premium if they were underpriced at offer time.
In: Finance
Design and implement a database for restaurant
At the end you will submit a report that has the following:
1-Describe the scenario of your database, what does it include, and what are the assumptions you have.
2-Draw an Entity-Relationship Diagram (ERD)
3-Write the schemas for 2 entities and 2 relationships
4- Compose two or three possible queries in written English and SQL that you can get from the database.
please l need the answer for this assignment.
In: Computer Science