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4 On January 1, 2018, Fowl Products Issued $90 milion of 8%, 10-year convertible bonds at a net price of $926 million. Fowl recently Issued
4 On January 1, 2018, Fowl Products Issued $90 milion of 8%, 10-year convertible bonds at a net price of $926 million. Fowl recently Issued similar, but nonconvertible, bonds at 98 (that is, 98% of face amount). The bonds pay interest on June 30 and December 31 Each $1.000 bond is convertible into 25 shares of Fowl's no por common stock. Fowl records Interest by the straight line method. On June 1, 2020, Fowl notified bondholders of its intent to call the bonds at face value plus a 2% coll premium on July 1, 2020. By June 30 all bondholders had chosen to convert their bonds into shares os of the interest payment date. On June 30, Fowl paid the semiannual interest and issued the requisite number of shares for the bonds being converted, Required: 1. Prepare the journal entry for the issuance of the bonds by Fowl 2. Prepare the journal entry for the June 30, 2018, Interest payment. 3. Prepare the journal entries for the June 30, 2020, interest payment by Fowl and the conversion of the bonds (book value method)
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