Fowl paid the semiannual interest and issued the requisite number of shares for the bonds being converted. Note:-
On January 1, 2024, Fowl Products issued $80 million of 6%, 10-year convertible bonds at a net price of $81.6 million. Fowl recently issued similar, but nonconvertible, bonds at 99 (that is, 99% of face amount). The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 30 shares of Fowl’s no par common stock. Fowl records interest by the straight-line method. On June 1, 2026, Fowl notified bondholders of its intent to call the bonds at face value plus a 1% call premium on July 1, 2026. By June 30 all bondholders had chosen to convert their bonds into shares as of the interest payment date. On June 30, Fowl paid the semiannual interest and issued the requisite number of shares for the bonds being converted.
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