Kk.342. Stonewall Corporation issued $32,000 of 5%, 10-year convertible bonds. Each $1,000 bond is convertible to 10 shares of common stock(par $50) of Stonewall Corporation. The bonds were sold at 105 on January 1.a. Provide the entry for Stonewall Corporation on January 1 for the bond issuance.DateJan, 1Account NameDateDec. 31To record bond issuance.b. Provide entries for Stonewall Corporation assuming that the conversion privilege is subsequently exercised immediately after the end ofthe third year. Assume that at the date of conversion, 30% of any premium or discount has been amortized and the common stock wasselling at $125 per share. Use the book value method.Account NameTo record bond conversion.Debit> > > >CreditDebitCredit511

Journal entry is the first stage of accounting process. Journal entry used to record business…

a. Provide the entry for Stonewall Corporation on January 1 for the bond issuance. Date Jan. 1 Account Name Date To record bond issuance. Debit b. Provide entries for Stonewall Corporation assuming that the conversion privilege is subsequently exercised immediately after the end the third year. Assume that at the date of conversion, 30% of any premium or discount has been amortized and the common stock was selling at $125 per share. Use the book value method. Account Name Credit Debit Credit

a. Provide the entry for Stonewall Corporation on January 1 for the bond issuance. Date Jan. 1 Account Name Date To record bond issuance. Debit b. Provide entries for Stonewall Corporation assuming that the conversion privilege is subsequently exercised immediately after the end the third year. Assume that at the date of conversion, 30% of any premium or discount has been amortized and the common stock was selling at $125 per share. Use the book value method. Account Name Credit Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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