Sunland Corporation issued $6120000 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, $1224000 of these bonds were converted into 500 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 $137700 O $143820 O $275400 O $131580
Sunland Corporation issued $6120000 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, $1224000 of these bonds were converted into 500 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 $137700 O $143820 O $275400 O $131580
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sunland Corporation issued $6120000 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, $1224000 of these bonds were converted into 500 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 $137700
O $143820
O $275400
O $131580
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