Hello, I am having difficulties finishing out the last question


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Feb 22, 2016. Hello, I am having difficulties finishing out the last question in my Unit 7 homework for my Accounting II course.  This topic is related to dilutive securities and earnings per share.  Please note, that this assignment is passed due, so any expedited answer would be greatly appreciated. Thank you, Katie A. VanLaningham ATTACHMENT PREVIEW Download attachment Unit 7 Extra Help.docx Aubrey Inc. issued $3,681,600 of 8%, 10-year convertible bonds on June 1, 2014, at 98 plus accrued interest. The bonds were dated April 1, 2014, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2015, $1,380,600 of these bonds were converted into 39,100 shares of $18 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) Prepare the entry to record the interest expense at October 1, 2014. Assume that accrued interest payable was credited when the bonds were issued. (b) Prepare the entry to record the conversion on April 1, 2015. (Book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment has been made. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. $3,500.) No Account Titles and . Explanation (a) Debit Bond Conv 49088 Bonds Pay Credit 98176 Discount on Cash (b) 3682 143582 Bonds Pay 1380600 Common St 703800 Paid-in Cap 676800 Don’t show me this message again for the assignment Click if you would like to Show Work for this question: Open Show Work Read more katie.vanlaningham
posted a question · Feb 22, 2016 at 3:12pm

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