Ivanhoe Limited had$2,760,000 of bonds payable outstanding and the unamortized premium for these bonds a Each$1,000 bond was covnertible into20 preferred shares. All bonds were then cone The contributed surplus - conversion rights account had a balacne of$22,500 Assume the company a) Assumign that the book vlaue method was used, what enetry would be made? Bonds payable$2,800,200 Contributed surplus - conversion rights$22,500 Preferred shares$2,822,700 b) Assume that Invahoe offers$9,000 to induce early conversion. What journal entry would be made? Loss on redemption of bonds$9,000 Bonds payable$2,800,200 Contributed surplus - conversion rights$22,500 Preferred shares$2,822,700 Cash$9,000
amounted to$40,200 erted into preferred shares y follows IFRS
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