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
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 |
