I was making it harder than it needed to be, I'm just unfamiliar as hell when it comes to the international standards since we don't really focus on that in class. For an accounting project this one was a breeze.Splatter©;1666742 said:accounting
good luck with that breh
no shyt you insufferable fakkit, I figured that out a long ass time ago (you can see in my second post I had it correct I just didn't know it was correct for sure or not)
no shyt you insufferable fakkit, I figured that out a long ass time ago (you can see in my second post I had it correct I just didn't know it was correct for sure or not)
just submitted my project, got done just in time for dexter
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'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
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
really? 
