### Journal Entry for Issuance of Convertible Bonds**Metlock Inc. issued $3,830,000 par value, 7% convertible bonds at 98 for cash. If the bonds had not included the conversion feature, they would have sold for 95.**#### Instructions:Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)---### Journal Entry Template:| Account Titles and Explanation | Debit | Credit ||--------------------------------|-------------|-------------|| | | || | | || | | |---### Explanation of the Diagram:The diagram above is a table meant to aid in the preparation of a journal entry for recording financial transactions related to the issuance of bonds by Metlock Inc. - **Account Titles and Explanation**: This column is for listing the names of the accounts affected by the transaction, as well as a brief explanation if necessary. - **Debit**: This column is for entering the amounts that will be debited from the accounts. - **Credit**: This column is for entering the amounts that will be credited to the accounts.In this context:- Issuing bonds at 98 means the bonds are issued at 98% of their par value.- The inclusion of a conversion feature likely increased the attractiveness and hence the price of the bonds to 98, compared to 95 without the feature.When completing the table, ensure that the total debit amounts equal the total credit amounts, consistent with the double-entry accounting system principles.

Bonds are a form of loan or debt issued by the company, on which regular interest payments are to be…

Metlock Inc. issued $3,830,000 par value, 7% convertible bonds at 98 for cash. If the bonds had not included the conversion feature, they would have sold for 95. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit

Metlock Inc. issued $3,830,000 par value, 7% convertible bonds at 98 for cash. If the bonds had not included the conversion feature, they would have sold for 95. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation 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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