accounting

posted by .

Bond Conversion



The tramot corporation has $2,000,000 of 6 percent bonds outstanding. There is $40,000 of unamoritized discount remaining on the bonds after the March 1, 2008 semiannual interest payment. The bonds are convertible at the rate of 20 shares of $10 par value common stock for each $1,000 bond. On March 1, 2008, bondholders presented $1,2000,000 of the bonds for conversion. Prepare the entry to record the conversion of the bonds.

Any help you could provide would be soooo greatly appreciated!

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics - Bonds

    The Garraty company has two bond issues outstanding. Both bonds pa $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years and Bond S a maturity of 1 year. A). What will be the value of each of these bonds when …
  2. Accounting

    The Dec. 31, 2001, balance sheet includes the following items: 9% bonds payable due 12/31/2010 $800,000 Discount on bonds payable $21,600 The bonds were issued on December 31, 2000, at 97, with interest payable on June 30 and December …
  3. accounting

    4/4/04, Corporation, which has a 12/31 year end authorized $1,500,000 of callable, mortgage bonds (secured by $2,200,000 of property and equipment, at market value). The bonds paid interest at a rate of 8% per year and had a term of …
  4. ACCOUNTING

    if a company issued $32,000,000 of 10-year, 12% bonds at an effective interest rate of 13%, receiving cash of $30,237,139 and interest on the bonds is paid semiannually how do you calculate the first semiannual interest payment and …
  5. accounting

    On January 2, 2010, Wine Corporation wishes to issue $2,000,000 (par value) of its 8%, 10-year bonds. The bonds pay interest annually on January 1. The current yield rate on such bonds is 10%. Using the interest factors below, compute …
  6. Intermediate Accounting

    Prepare all the necessary journal entries to record the following transactions: 1. Sale of a 20 year convertible bond (dated March 1, 2001) with a face value of $1,000,000, interest rate 5%. The bonds were sold 4 months later on June …
  7. Finance

    United Technology Corporation (UTC) has $40 million of convertible bonds outstanding (40,000 bonds at $1,000 par value) with a coupon rate of 11 percent. Interest rates are currently 8 percent for bond of equal risk. The bonds have …
  8. fianance

    can you check my answers if they are correct thank you 1.) A convertible bond is currently selling for $945. It is convertible into 15 shares of common which presently sell for $57 per share. What is the conversion premium?
  9. Accounting

    Alliant Corporation sold $100,000,000 face value 8% bonds. The bonds mature in 20 years and pay interest semiannually. The going market rate of interest on bonds of similar risk is 6%. How much will Aliant receive upon the sale of …
  10. Accounting

    Jacks Corporation purchases $200,000 bonds plus accrued interest for 2 months of $2,000 from Kennedy Company on March 1. The bonds have an annual interest rate of 6% payable on June 30 and December 31. The entry to record the purchase …

More Similar Questions