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!

  1. 👍 0
  2. 👎 0
  3. 👁 109
asked by Fantasy

Respond to this Question

First Name

Your Response

Similar Questions

  1. 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? A. $90

    asked by Raj on January 5, 2013
  2. 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

    asked by John on November 13, 2012

    Bond valuation Nungesser Corporation’s outstanding bonds have a $1,000 par value, a 9 percent semiannual coupon, 8 years to maturity, and an 8.5 percent YTM. What is the bond’s price?

    asked by Mel on September 18, 2007
  4. accounts

    Package Plus, Inc. has $2,000,000 of 10% bonds outstanding on December 31, 20X8. On January 1, 20X9, WrapIt Corporation, an 80%-owned subsidiary of Package Plus, Inc. purchases a $200,000 part of Package Plus, Inc.’s outstanding

    asked by accounts on August 26, 2012
  5. Math

    On March 31, 2009, Wolfson Corporation acquired all of the outstanding common stock of barney Corporation for $17,000,000 in cash. The book values and fair values of barney's assets and liabilities were as follows: Book value Fair

    asked by Bobbi Loffredo on April 2, 2011
  6. Accounting

    1. The price of a bond is equal to the sum of the interest payments and the face amount of the bonds. 1. True 2. False 2. When a corporation issues bonds, it executes a contract with the bondholders, known as a bond debenture. 1.

    asked by Tasha on July 25, 2010
  7. accounting

    Ziegler Corporation purchased 25,000 shares of common stock of the Sherman Corporation for $40 per share on January 2, 2010. Sherman Corporation had 100,000 shares of common stock outstanding during 20 I3, paid cash dividends of

    asked by Andrew on April 20, 2013
  8. finance

    AAA has only stock and bonds in its capital structure. Balance sheet information: Long term debt (par value--NOT number of bonds) = $20,000,000, Common equity and retained earings = $17,000,000, and Shares of stock outstanding =

    asked by tina on June 1, 2012
  9. accounting

    These questions are so confusing. So I was wondering what are each of the formulas to solve each question or what steps I need to take to complete them? I've been trying and I can't find the correct answer. ____ 11. The Dayton

    asked by Mickey on February 22, 2010
  10. Finance

    YNB Ltd. acquired Pty Ltd. 10 years ago. In order to fund this acquisition, YNB Ltd issued a bond. Currently it has an outstanding amount of $50,000,000 with maturity in 2 years. The bond has a coupon rate of 5% (payable

    asked by Mounir on October 2, 2015

More Similar Questions