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10. On 1/2/YR1 XYZ issued 500, $1,000 face value bonds with a coupon rate of 5%, pay interest semiannually, mature in ten years, and are

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10. On 1/2/YR1 XYZ issued 500, $1,000 face value bonds with a coupon rate of 5%, pay interest semiannually, mature in ten years, and are convertible into 50 shares of its common stock. The bonds were issued for $1,100 each. The company will amortize any premium or discount using the straight-line method. The company's common equity was trading for $15/ share on 1/2/YR1. On 6/30/YR2, immediately after the third interest payment, 1 of the bonds were converted. The stock was trading for $30 on this day. Prepare the journal entry to record: a) The bond issue: b) The third interest payment. c) The conversion of of the bonds

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