Pido, Rea Lee Joy U. 14/04/21
(A)
Issue price of bonds and warrants (5, 000,000 x 1.08) P 5, 400,000
Mv of bonds without warrants (5, 000,000 x 1.02) 5, 100,000
Value assigned to warrants P 300, 000
a. Cash 5, 400,000
Premium on bonds payable 100, 000
Bonds payable 5, 000,000
Share warrants outstanding 300, 000
b. Cash (5, 000 x 2x 140) 1, 400,000
Share warrants outstanding 300, 000
Ordinary shares capital (5, 000X 2 X 100) 1, 000.000
Share premium – ordinary 700, 000
(B)
a. Issue price of bonds with warrants (1, 000,000 x 1.04) 1, 040,000
Bond price without warrants
1, 000, 000 x 0.3220 322, 000
100, 000 x 5.6502 565, 020 887, 020
Value of share warrants 152, 980
b. Interest expense for 2015 (887, 020 x 12% x 10/12) 88, 702
c. Bond carrying value, March 1, 2015 887, 020
Amortization through December 31, 2015
887, 020 x 12% x 10/12 88, 702
1, 000,000 x 10% x 10/12 83, 333 5, 369
Bond carrying value, December 31, 2015 892, 389
(A)
Issue price of bonds and warrants (5, 000,000 x 1.08) P 5, 400,000
Mv of bonds without warrants (5, 000,000 x 1.02) 5, 100,000
Value assigned to warrants P 300, 000
a. Cash 5, 400,000
Premium on bonds payable 100, 000
Bonds payable 5, 000,000
Share warrants outstanding 300, 000
b. Cash (5, 000 x 2x 140) 1, 400,000
Share warrants outstanding 300, 000
Ordinary shares capital (5, 000X 2 X 100) 1, 000.000
Share premium – ordinary 700, 000
(B)
a. Issue price of bonds with warrants (1, 000,000 x 1.04) 1, 040,000
Bond price without warrants
1, 000, 000 x 0.3220 322, 000
100, 000 x 5.6502 565, 020 887, 020
Value of share warrants 152, 980
b. Interest expense for 2015 (887, 020 x 12% x 10/12) 88, 702
c. Bond carrying value, March 1, 2015 887, 020
Amortization through December 31, 2015
887, 020 x 12% x 10/12 88, 702
1, 000,000 x 10% x 10/12 83, 333 5, 369
Bond carrying value, December 31, 2015 892, 389
