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The December 31, 2012 balance sheet of Wolfe Co. included the following items: 7.5% convertible bonds...

The December 31, 2012 balance sheet of Wolfe Co. included the following items:

7.5% convertible bonds payable due December 31, 2020 $2,000,000

Unamortized Premium on bonds payable 100,000

The bonds were issued on December 31, 2010 at 104, with interest payable every June 30 and December 31. Each $1,000 bond is convertible to 20 shares of $5 par value common stock. The stocks had a market price of $25 per share.

On January 1, 2013, after recording the December interest, Wolfe:

Retired half of the bonds at 98 and converted the other half of the bonds to common stocks.

Prepare journal entries for each transaction.

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ekkarill92 answered 1 year ago
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