Nama : Alya Salsabiila Wahyudhianty

NPM : 2020210020

Ex. 1
a) Cash $ 120.000
Bonds payable $ 107.986
Share Premium-Conversion Equity $ 12.014

b) Bonds payable $ 103.567

Share Premium-Conversion Equity $ 12.014
Share Capital-Ordinary $ 12.000
Share Premium-Ordinary $ 103.581

c) Bonds payable $ 103.567

Share Premium-Conversion Equity $ 3.000
Loss on Repurchase $ 4.433
Cash $ 111.000

Computation of gain or loss on repurchase :

Present value of liability component
Dec 31, 2024 $ 108.000
Less : Carrying value $ 103.567
Loss on repurchase $ 4.433

Adjustment to equity :
Fair vlue of convertible bonds $ 111.000
Less : Liability component $ 108.000
Adjusment to equity $ 3.000

Ex. 2
1) Cash (€5.000.000 × .99) € 4.950.000
Bonds payable (€5.000.000 × .95) € 4.750.000
Share Premium-Conversion Equity € 200.000

2) Cash (€5.000.000 × .98) € 4.900.000

Bonds payable € 4.800.000
Share Premium-Share Warrants € 100.000

3) Bonds payable € 4.800.000

Share Premium-Conversion Equity € 100.000
Convertion Expense € 35.000
Share Capital-Ordinary € 500.000
Share Premium-Ordinary [(€4.800.000 + €100.000) - €500.000] € 4.400.000
Cash € 35.000

Ex.
a) Present Value of Principal (€3.000.000 × 0.79383) € 2.381.490
Present vValue of Interest Payments (€180.000 × 2.57710) € 463.878
Present Value of the Liability Component € 2.845.368

Fair Value of convertible Debt € 3.000.000

Less : Fair Value of Liability Component € 2.845.368
Fair Value of Equity Component € 154.632

b) Cash € 3.000.000
Bonds payable $ 2.845.368
Share Premium-Conversion Equity $ 154.632

c) Bonds payable (€2.845.368 + €47.629) $ 2.892.997

Share Premium-Conversion Equity $ 154.632
Share Capital-Ordinary $ 750.000
Share Premium-Ordinary $ 2.297.629
c) Bonds payable $ 2.892.997
Share Premium-Conversion Equity (€2.910.000 + €2.850.000) $ 60.000
Cash $ 2.910.000
Gain on Repurchase (€2.892.997 + €2.850.000) $ 42.997
[€2.892.997 + €2.850.000]