Splish Inc. issued $5,250,000 of convertible 5-year bonds on July 1, 2025. The bonds provide for 6% interest payable semiannually onJanuary 1 and July 1. The discount in connection with the issue was $108,000, which is being amortized monthly on a straight-linebasis.The bonds are convertible after one year into 15 shares of Splish Inc.'s $1 par value common stock for each $1,000 of bonds.On October 1, 2026, $630,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly andpaid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash.Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" forthe account titles and enter O for the amounts. List all debit entries before credit entries.)(a) October 1, 2026. (Assume the book value method is used.)

Journal entries refer to the concept of noting all the transactions of a company in the…

Answered: Splish Inc. issued $5,250,000 of

Business

Accounting

Splish Inc. issued $5,250,000 of

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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