$1.$

Question $1$

On $1/1/20$X$1,$ Illini issues $$20,000$ face amount $10\%$ ordinary convertible bonds maturing $12/31/20$X$3.$ The bonds are issued at the face amount. Interest is paid semiannually on June $30$ and December $31.$ Each $$25$ bond can be converted into one share of $$1$ par common stock of Illini. On $1/1/20$X$2,$ half of the convertible bonds are converted into Illini$’$s common stock.

Please refer to the instructions and the table in this question. Enter the correct journal entry for part $[$A$].$

Project $2\mathrm{.}1$ Part $2$ Journal Entries

Date

Account Name $($Debit$)$

Account Name $($Credit$)$ 

Debit

Credit

$1/1/20$X$1$

Cash

$[$A$]$

Bonds payable

$[$B$]$

$6/30/20$X$1$

Interest expense

$[$C$]$

Cash

$[$D$]$

$12/31/20$X$1$

Interest expense

$[$E$]$

Cash

$[$F$]$

$1/1/20$X$2$

Bonds payable

$[$G$]$

Common stock

$[$H$]$

APIC

$[$I$]$

$6/30/20$X$2$

Interest expense

$[$J$]$

Cash

$[$K$]$

$12/31/20$X$2$

Interest expense

$[$L$]$

Cash

$[$M$]$