Question
(4 points) G issued $6,000,000 of 7%, 5-year convertible bonds on 07-01-14 when the market rate for similar bonds was 6.5%. The bonds were dated
(4 points) G issued $6,000,000 of 7%, 5-year convertible bonds on 07-01-14 when the market rate for similar bonds was 6.5%. The bonds were dated 07-01-14 with interest payable January 01 and July 01. G incurred and paid $150,000 of bond issuance costs. On 07-01-17 after making all of its interest payments, 75% of the bonds were converted into 18,000 shares of Gs $1 par value common stock. G only prepares AJEs every December 31. Prepare the entries G should make on:
(a) 07-01-14
(b) 12-31-14
(c) 01-01-15
(d) 07-01-15
(e) 07-01-17
(f)12-31-17
(g) 01-01-18
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started