Renegade, Inc. called its convertible debt in 2020. The 10% $1,000,000 par value bonds were converted into 100,000 shares of $2 par value common stock on July 1, 2020. On July 1, there was $45,000 of unamortized discount applicable to the bonds, and the company paid an additional $75,000 to the bondholders to induce conversion of all the bonds. Using the book value method, Renegade, Inc. would record the following journal entry at the time of conversion:
Renegade, Inc. called its convertible debt in 2020. The 10% $1,000,000 par value bonds were converted into 100,000 shares of $2 par value common stock on July 1, 2020. On July 1, there was $45,000 of unamortized discount applicable to the bonds, and the company paid an additional $75,000 to the bondholders to induce conversion of all the bonds. Using the book value method, Renegade, Inc. would record the following journal entry at the time of conversion:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Renegade, Inc. called its convertible debt in 2020. The 10% $1,000,000 par value bonds were converted into 100,000 shares of $2 par value common stock on July 1, 2020. On July 1, there was $45,000 of unamortized discount applicable to the bonds, and the company paid an additional $75,000 to the bondholders to induce conversion of all the bonds. Using the book value method, Renegade, Inc. would record the following journal entry at the time of conversion:
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