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Tatum Corporation has $2,000,000 worth of 7 percent convertible bonds outstanding. On September 1, 2010, there is $80,000 of unamortized discount associated with these bonds. The bonds are convertible at the rate of 30 shares of $10 par value common stock for each $1,000 bond. On September 1, 2010,an interest payment date, bondholders presented $1,400,000 of the bonds for conversion. Prepare an entry in journal form without explanation to record the conversion of the bonds.

Tatum Corporation has $2,000,000 worth of 7 percent convertible bonds outstanding. On September 1, 2010, there is $80,000 of unamortized discount associated with these bonds. The bonds are convertible at the rate of 30 shares of $10 par value common stock for each $1,000 bond. On September 1, 2010,an interest payment date, bondholders presented $1,400,000 of the bonds for conversion. Prepare an entry in journal form without explanation to record the conversion of the bonds.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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6. Tatum Corporation has $2,000,000 worth of 7 percent convertible bonds outstanding. On September 1, 2010, there is $80,000 of unamortized discount associated with these bonds. The bonds are convertible at the rate of 30 shares of $10 par value common stock for each $1,000 bond. On September 1, 2010, an interest payment date, bondholders presented $1,400,000 of the bonds for conversion. Prepare an entry in journal form without explanation to record the conversion of the bonds.
Transcribed Image Text:6. Tatum Corporation has $2,000,000 worth of 7 percent convertible bonds outstanding. On September 1, 2010, there is $80,000 of unamortized discount associated with these bonds. The bonds are convertible at the rate of 30 shares of $10 par value common stock for each $1,000 bond. On September 1, 2010, an interest payment date, bondholders presented $1,400,000 of the bonds for conversion. Prepare an entry in journal form without explanation to record the conversion of the bonds.
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