Nabil Company issued $1,500,000 of bonds on January 1, 2020. Instructions Prepare the journal entry to record the issuance of the bonds if they are issued at 100, 97, and 105 Prepare the journal entry to record the retirement of the bonds at maturity, assuming the bonds were issued at 100. Prepare the journal entry to record the redemption of the bonds before maturity at 97. Assume the balance in Premium on Bonds Payable is $15,000. Prepare the journal entry to record the conversion of the bonds into 50,000 shares of $10 par value common stock. Assume that bonds were issued at par.
Nabil Company issued $1,500,000 of bonds on January 1, 2020. Instructions Prepare the journal entry to record the issuance of the bonds if they are issued at 100, 97, and 105 Prepare the journal entry to record the retirement of the bonds at maturity, assuming the bonds were issued at 100. Prepare the journal entry to record the redemption of the bonds before maturity at 97. Assume the balance in Premium on Bonds Payable is $15,000. Prepare the journal entry to record the conversion of the bonds into 50,000 shares of $10 par value common stock. Assume that bonds were issued at par.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 16E
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Question
- Nabil Company issued $1,500,000 of bonds on January 1, 2020.
Instructions
- Prepare the
journal entry to record the issuance of the bonds if they are issued at
- 100,
- 97, and
- 105
- Prepare the journal entry to record the retirement of the bonds at maturity, assuming the bonds were issued at 100.
- Prepare the journal entry to record the redemption of the bonds before maturity at 97. Assume the balance in Premium on Bonds Payable is $15,000.
Prepare the journal entry to record the conversion of the bonds into 50,000 shares of $10 par value common stock. Assume that bonds were issued at par.
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