Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2021, a company issued 1,000 of its

On January 1, 2021, a company issued 1,000 of its 8% 5-year P5,000 convertible bonds...

80.2K

Verified Solution

Question

Accounting

On January 1, 2021, a company issued 1,000 of its 8% 5-year P5,000 convertible bonds at P200,000 premium. Interests on these bonds are payable every December 31. The bonds are convertible into 40,000 of the company's ordinary shares with par value of P100. On December 31, 2023, 200 bonds were converted while at the end of 2024, 400 bonds were retired at P2,020,000. Without the conversion feature, the market rate of interest for the company's bonds on January 1, 2021 and December 31, 2024 are 10% and 11%, respectively. What is the carrying amount of the bonds on December 31, 2023?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A B C D 14. A steel ball is dropped from a diving platform (with an...

Physics
Q

Explain the concept of social harm, and discuss the contention by some scholars that public order...

Psychology
Q

In a recent study on world? happiness, participants were asked to evaluate their current lives on...

Basic Math
Q

An 85.5 kg astronaut is training for accelerations that he will experience upon reentry. He...

Physics
Q

Function Parent Functions 1 Create a table of values showing at least four image points...

Basic Math
Q

involving exactly k variables For instance the Boolean expression in 2 variables X x1 x2...

Basic Math
Q

II Using the comparison test and exercise V 1 3 show that the following series...

Basic Math
Q

A mirror should be centered on a wall The mirror is 36 inches wide and...

Basic Math
Q

If cos 50 cos 0 sin 30 and 0 0 then 2x x 7 3...

Algebra
Q

Required information [The following information applies to the questions displayed below.] ...

Accounting
Q

4. The payback period As Aa The payback method helps firms establish and identify a...

Finance
Q

This is my final year project.Can you help to provide and explain briefly on chapter...

Finance