Accounting brehs, help me :to:

[Sensitive Blake Griffin]

I'm doing a project right now, I had to record a journal entry for:

a. On August 31, 2012, Harvest issued $1,000,000 worth of 10-year, 4% convertible bonds at par. On the date of the sale, the market rate of interest was 6%. Each $1,000 bond is convertible into 20 shares of common stock. Interest will be paid on February 28 and August 31 of each year beginning on February 28, 2013.

sinced its issued at par, in accordance to GAAP it would be

Cash 1,000,000
Convertible Bonds Payable 1,000,000

Then I have to explain how it would be different under IFRS, My teacher told me that under IFRS there would be a discount? How? if its issued at par.

I don't know how to calculate the equity conversion option

I hope that accountant cat reads this

 

[aliG]

This is very easy. Go to accountingcoach.com.

 

[Sensitive Blake Griffin]

This is very easy. Go to accountingcoach.com.

 

[He Who Posts Well]

I'm too tired to check my notes...it's not in your book breh?

 

[Sensitive Blake Griffin]

I'm too tired to check my notes...it's not in your book breh?

All the examples are different. I understand EXACTLY how it works in other situations but not in this one because its at par value and we didn't really go over IFRS differences. I'm guessing the discount/equity conversion is simply the difference between the present value of the bonds at the stated rate and the present value of the bonds at market rate

@Par the bonds are worth 1,000,000
@Market rate they're worth 851,229
Difference = 148,771

I'm just having trouble recording the journal entry..

I think it would be

Cash 1,000,000
Discount 148,771
Bonds Payable 1,000,000
Equity Conv 148,771


I gotta get this shyt right because its worth as much as a test I know the solution is really really simple, I was hoping some of my knowledgeable brehs would be able to clear it up quickly

 

[VerbalIntercourse]

I'm doing a project right now, I had to record a journal entry for:

a. On August 31, 2012, Harvest issued $1,000,000 worth of 10-year, 4% convertible bonds at par. On the date of the sale, the market rate of interest was 6%. Each $1,000 bond is convertible into 20 shares of common stock. Interest will be paid on February 28 and August 31 of each year beginning on February 28, 2013.

sinced its issued at par, in accordance to GAAP it would be

Cash 1,000,000
Convertible Bonds Payable 1,000,000

Then I have to explain how it would be different under IFRS, My teacher told me that under IFRS there would be a discount? How? if its issued at par.

I don't know how to calculate the equity conversion option

I hope that accountant cat reads this

I took an accelerated intermediate 2 class that skipped IFRS. We didn't go over convertable bonds either.
I didn't go over IFRS in my Intermediate 2 class because it was only 4 weeks long.



I can tell you that I think you're wrong about your first entry because the market rate of interest is different than the stated rate.
.

The answer, if you're using the standard most widely used textbook, is on page 771.

This is accounting so, If iI give you the answer you will never learn, YOU HAVE to learn by repetition.

Do some problems.

 

[TheBigBopper]

Why I didn't major in accounting

 

[Mowgli]

I'm doing a project right now, I had to record a journal entry for:

a. On August 31, 2012, Harvest issued $1,000,000 worth of 10-year, 4% convertible bonds at par. On the date of the sale, the market rate of interest was 6%. Each $1,000 bond is convertible into 20 shares of common stock. Interest will be paid on February 28 and August 31 of each year beginning on February 28, 2013.

sinced its issued at par, in accordance to GAAP it would be

Cash 1,000,000
Convertible Bonds Payable 1,000,000

Then I have to explain how it would be different under IFRS, My teacher told me that under IFRS there would be a discount? How? if its issued at par.

I don't know how to calculate the equity conversion option

I hope that accountant cat reads this

I asked my lady to help you because her account skills are elite but she said your posts are too demonic so she declined when i asked. Sorry bruh.

 

[Sensitive Blake Griffin]

I asked my lady to help you because her account skills are elite but she said your posts are too demonic so she declined when i asked. Sorry bruh.

this is why you need to stay on mowgli breh, your asian lady an accountant eh? my accounting classes are like 80% asian women who look like 12 year old boys, no wonder you married one

I asked my teacher though, I finally got it right the answer is:

Cash 1,000,000
Discount 148,771
Convertible Bonds Payable 1,000,000
Equity Conversion 148,771

 

[Mowgli]

this is why you need to stay on mowgli breh, your asian lady an accountant eh? my accounting classes are like 80% asian women who look like 12 year old boys, no wonder you married one

I asked my teacher though, I finally got it right the answer is:

Cash 1,000,000
Discount 148,771
Convertible Bonds Payable 1,000,000
Equity Conversion 148,771

12 year old boys dont have d cups nikka.

Coo, you looked in the back of the book and found the answers. I guess thats where you're at, cheating your way through life.

 

[Sensitive Blake Griffin]

12 year old boys dont have d cups nikka.

Coo, you looked in the back of the book and found the answers. I guess thats where you're at, cheating your way through life.

thats not from the book breh, this is for a project, its harder than some normal problem

you know we white people gotta cheat the system

asian girl with d-cups breh? how big is that waistline

 

[Mowgli]

thats not from the book breh, this is for a project, its harder than some normal problem

you know we white people gotta cheat the system

asian girl with d-cups breh? how big is that waistline

Mid 20's? No fatties over here bruh

Dont worry bruh, theyll have a minority train you and then give you his job and pay you more for having mediocre skills compared to him.

 

[Sensitive Blake Griffin]

Mid 20's? No fatties over here bruh

Dont worry bruh, theyll have a minority train you and then give you his job and pay you more for having mediocre skills compared to him.

 

[Mowgli]

 

[Splatter©]

accounting

good luck with that breh