Oriole Corporation issued $6600000 of 9%, ten-year convertible bonds on July 1, 2024 at 96.1 plus accrued interest. The bonds weredated April 1, 2024 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. OnApril 1, 2025, $1320000 of these bonds were converted into 600 shares of $20 par value common stock. Accrued interest was paid incash at the time of conversion.If Interest Payable was credited when the bonds were issued, what amount should be debited to Interest Expense on October 1, 2024?O $155100O $297000O $141900O $148500

Convertible bonds issued by Oriole Corporation have a face value of $6,600,000, with a 9% stated…

Answered: If Interest Payable was credited when…

If Interest Payable was credited when the bonds were issued, what amount should be debited to Interest Expense on October 1, 2024? $155100 O $297000 O $141900 O $148500

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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Question

Oriole Corporation issued $6600000 of 9%, ten-year convertible bonds on July 1, 2024 at 96.1 plus accrued interest. The bonds were
dated April 1, 2024 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On
April 1, 2025, $1320000 of these bonds were converted into 600 shares of $20 par value common stock. Accrued interest was paid in
cash at the time of conversion.
If Interest Payable was credited when the bonds were issued, what amount should be debited to Interest Expense on October 1, 2024?
O $155100
O $297000
O $141900
O $148500

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