On January 1, X0 the jones company issued $100000 convertible bonds. The bonds pay 5% interest...

On January 1, X0 the jones company issued $100000 convertible bonds. The bonds pay 5% interest annually and are due in 10 years. each $1000 bond can be converted into 10 shares of the company’s $75 par value common stock. The bonds were issued at 106. The company uses the straight-line method of amortization.

1. prepare the journal entry to record issuing the bond.

2. prepare the journal entry to record the annual interest payment and amortization.

3. after making the fourth annual interest payment, all the bondholders exercise their conversion privilege. Prepare the journal entry to record the bond conversion.

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ekkarill92 answered 1 year ago

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