Problem 16-2 Shamrock Inc. issued $3,120,000 of convertible10-year bonds on July 1, 2017. The bonds provide for 12% interestpayable semiannually on January 1 and July 1. The discount inconnection with the issue was $49,200, which is being amortizedmonthly on a straight-line basis. The bonds are convertible afterone year into 8 shares of Shamrock Inc.âs $100 par value commonstock for each $1,000 of bonds. On August 1, 2018, $312,000 ofbonds were turned in for conversion into common stock. Interest hasbeen accrued monthly and paid as due. At the time of conversion,any accrued interest on bonds being converted is paid in cash.Prepare the journal entries to record the conversion, amortization,and interest in connection with the bonds as of the followingdates. (Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required,select "No Entry" for the account titles and enter 0 for theamounts.) (a) August 1, 2018. (Assume the book value method isused.) (b) August 31, 2018. (c) December 31, 2018, includingclosing entries for end-of-year.
Problem 16-2 Shamrock Inc. issued $3,120,000 of convertible10-year bonds on July 1, 2017. The bonds provide for 12% interestpayable semiannually on January 1 and July 1. The discount inconnection with the issue was $49,200, which is being amortizedmonthly on a straight-line basis. The bonds are convertible afterone year into 8 shares of Shamrock Inc.âs $100 par value commonstock for each $1,000 of bonds. On August 1, 2018, $312,000 ofbonds were turned in for conversion into common stock. Interest hasbeen accrued monthly and paid as due. At the time of conversion,any accrued interest on bonds being converted is paid in cash.Prepare the journal entries to record the conversion, amortization,and interest in connection with the bonds as of the followingdates. (Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required,select "No Entry" for the account titles and enter 0 for theamounts.) (a) August 1, 2018. (Assume the book value method isused.) (b) August 31, 2018. (c) December 31, 2018, includingclosing entries for end-of-year.
Related questions
Please show your work so that I can understand what isinvolved.
Volker Inc. issued $4,392,000 of convertible 10-year bonds onJuly 1, 2014. The bonds provide for 12% interest payablesemiannually on January 1 and July 1. The discount in connectionwith the issue was $64,800, which is being amortized monthly on astraight-line basis.
The bonds are convertible after one year into 10 shares of VolkerInc.âs $100 par value common stock for each $1,200 of bonds.
On August 1, 2015, $439,200 of bonds were turned in for conversioninto common stock. Interest has been accrued monthly and paid asdue. At the time of conversion, any accrued interest on bonds beingconverted is paid in cash.
Prepare the journal entries to record the conversion, amortization,and interest in connection with the bonds as of the followingdates. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually. If noentry is required, select "No Entry" for the account titles andenter 0 for the amounts.)
| (a) | August 1, 2015. (Assume the book value method is used.) | |
| (b) | August 31, 2015. | |
| (c) | December 31, 2015, including closing entries forend-of-year |
