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Family Food Industries

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Family Food Industries reported the following at September 30;Long-term liabilities;Convertible bonds payable $400,000;Less: Discount on bonds payable (12,000) $388,000;Requirements;1. Record retirement of half of the bonds on October 1 at the call price of 101.;2. Imagine that the bonds had not been retired. What would cause the bondholders to convert their bonds into stock?;Journal;Date Accounts and Explanations Post Ref. Debit Credit;Oct 1;Computations;Maturity value of bonds being retired;Less: Discount on bonds payable;Carrying value of bonds payable;Less: Market price;Loss on retirement of bonds payable

 

Paper#79594 | Written in 18-Jul-2015

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