When $5,000,000 in Convertible Bonds Are Issued at Par with $800,000

question 93

Multiple Choice

When $5,000,000 in convertible bonds are issued at par with $800,000 in value of the equity option embedded in the bond, the IFRS journal entry will include a debit of

• A) $800,000 to Paid-in Capital - Convertible Bonds and a credit to Bonds Payable.
• B) $800,000 to Premium on Bonds Payable and a credit to Paid-in Capital - Convertible Bonds.
• C) $800,000 to Bonds Payable and a credit to Paid-in Capital - Convertible Bonds.
• D) $4,200,000 to Cash along with a debit of $800,000 to Discount on Bonds Payable and a credit to Bonds Payable and a credit to Paid-in Capital - Convertible Bonds.

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A government-imposed limit on the quantity or value of a particular product that can be imported into a country over a specified time period.

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