Problem 16-2 Shamrock Inc. issued $3,120,000 of convertible10-year bonds on July 1, 2017. The...

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Problem 16-2 Shamrock Inc. issued $3,120,000 of convertible10-year bonds on July 1, 2017. The bonds provide for 12% interestpayable semiannually on January 1 and July 1. The discount inconnection with the issue was $49,200, which is being amortizedmonthly on a straight-line basis. The bonds are convertible afterone year into 8 shares of Shamrock Inc.’s $100 par value commonstock for each $1,000 of bonds. On August 1, 2018, $312,000 ofbonds were turned in for conversion into common stock. Interest hasbeen accrued monthly and paid as due. At the time of conversion,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 followingdates. (Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required,select "No Entry" for the account titles and enter 0 for theamounts.) (a) August 1, 2018. (Assume the book value method isused.) (b) August 31, 2018. (c) December 31, 2018, includingclosing entries for end-of-year.

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Journal Entries a August 1 2018 1 Dr 12 Convertible Bonds ac 312000 Cr Share Capital ac 249600 Cr Securities Premium ac62400 2Dr Interest on bonds ac31200 Cr 12 Convertible Bonds ac31200 3 Dr12 Convertible Bonds ac 3120 Cr Bank ac3120 4 Dr Profit loss ac See Answer

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In: AccountingProblem 16-2 Shamrock Inc. issued $3,120,000 of convertible10-year bonds on July 1, 2017. The bonds...Problem 16-2 Shamrock Inc. issued $3,120,000 of convertible10-year bonds on July 1, 2017. The bonds provide for 12% interestpayable semiannually on January 1 and July 1. The discount inconnection with the issue was $49,200, which is being amortizedmonthly on a straight-line basis. The bonds are convertible afterone year into 8 shares of Shamrock Inc.’s $100 par value commonstock for each $1,000 of bonds. On August 1, 2018, $312,000 ofbonds were turned in for conversion into common stock. Interest hasbeen accrued monthly and paid as due. At the time of conversion,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 followingdates. (Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required,select "No Entry" for the account titles and enter 0 for theamounts.) (a) August 1, 2018. (Assume the book value method isused.) (b) August 31, 2018. (c) December 31, 2018, includingclosing entries for end-of-year.