Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. h 0ah inc. issued $3,000,000 of convertible 10-yea

h 0ah Inc. issued $3,000,000 of convertible 10-year bonds on July 1, 2017 The bonds...

80.2K

Verified Solution

Question

Accounting

image
image
h 0ah Inc. issued $3,000,000 of convertible 10-year bonds on July 1, 2017 The bonds provide for 11% interest payabl semiannually on January 1 and July 1 The discou nt in connection with the issue was $56,400, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 9 shares of Pharoah Inc.'s $100 par value common stock for each $1,000 of bonds. At the time of conversion, On August 1, 2018, $300,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (Credit account titles are amounts.) (a) August 1, 2018. (Assume the book value method is used.) (b) August 31, 2018. (c) December 31, 2018, including closing entries for end-of-year. Debit Credit Account Titles and Explanation Cash Discount on Issue of Bonds Bonds Payable No. Date (a) Aug. 1, 2018 (To record the issuance of shares of common stock and the write-off of the discount on bonds payable.) Aug. 1, 2018

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students