Quiz 2 BP With Answers PDF
Quiz 2 BP With Answers PDF
REQUIRED:
Based on the above and the result of your audit, determine the following:
(Round off present value factors to four decimal places)
1. Issue price of the 2,000 5 year bonds
2. Carrying amount of the 2,000 5 year bonds at December 31, 2014
3. Gain on early retirement of bonds on December 31, 2015
4. Equity component of the 6-year bonds
5. Increase share premium as a result of the conversion of the 1,500 6-year
SOLUTION:
Requirement No. 1
Alternative computation:
Requirement No. 3
Alternative computation:
Requirement No. 5