LMN Company Reported the Following Amounts on Its Balance Sheet

question 52

Essay

LMN Company reported the following amounts on its balance sheet at July 31,2018:
Liabilities
Convertible bonds payable,$10,000,000 face value 9%,due July 31,2019 9,909,091
Equity

Additional information
1.The bonds pay interest each July 31.Each $1,000 bond is convertible into 10 common shares.The bonds were originally issued to yield 10%.On July 31,2019,all the bonds were converted after the final interest payment was made.LMN uses the book value method to record bond conversions as recommended under IFRS.
2.No other share or bond transactions occurred during the year.
Required:
a.Prepare the journal entry to record the bond interest payment on July 31,2019.
b.Calculate the total number of common shares outstanding after the bonds' conversion on July 31,2019.
c.Prepare the journal entry to record the bond conversion.

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Definitions:

Bandwidth

The range of frequencies within a given band, especially that used for transmitting a signal.

Angle Theta

Often used to represent an angle in a geometric figure or the phase difference in waves.

RLC Parallel Circuit

An electrical circuit in which a resistor (R), an inductor (L), and a capacitor (C) are connected parallelly, affecting the impedance and behavior of AC circuits.

RLC Parallel Circuit

An electrical circuit that contains a resistor (R), inductor (L), and capacitor (C) all connected in parallel, affecting the overall impedance differently from a series circuit.