Current Attempt in ProgressFlint Inc. issued $3,780,000 of 9%, 10-year convertible bonds on June 1, 2020, at 98 plus accrued interest. The bonds were dated April1, 2020, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis.On April 1, 2021, $1,417,500 of these bonds were converted into 30,000 shares of $19 par value common stock. Accrued interest waspaid in cash at the time of conversion.(a)(b)Prepare the entry to record the interest expense at October 1, 2020. Assume that accrued interest payable was creditedwhen the bonds were issued.Prepare the entry to record the conversion on April 1, 2021. (Book value method is used.) Assume that the entry to recordamortization of the bond discount and interest payment has been made.

Given information is:Aubrey Inc. issued $3,780,000 of 10%, 10-year convertible bonds on June 1,…

On April 1, 202 paid in cash at the time of conversion. (a) (b) Prepare the entry to record the interest expense at bctober 1, 2020. Assume that accrued interest payable was credited when the bonds were issued. Prepare the entry to record the conversion on April 1, 2021. (Book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment has been made.

On April 1, 202 paid in cash at the time of conversion. (a) (b) Prepare the entry to record the interest expense at bctober 1, 2020. Assume that accrued interest payable was credited when the bonds were issued. Prepare the entry to record the conversion on April 1, 2021. (Book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment has been made.

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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