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ABC industries issued $1,000,00 of 3 year bonds on January 1, 2022. The bonds have a stated rate of 10% and interest is payable annually

ABC industries issued $1,000,00 of 3 year bonds on January 1, 2022. The bonds have a stated rate of 10% and interest is payable annually every 12/31/XX. The market rate for similar bonds is 6%.

A) Record the 12/31/2022 journal entry for the bonds.

B) Assume the bonds above have a conversation option to convert each $1,000 bond into 15 shares of common stock. On January 1, 2023 all of the bonds were converted. Record the journal entry to show the conversation.

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