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Algernon Ltd. issued convertible 5-year bonds on August 1, 20X4 for $217,000. The bonds had a maturity value of $200,000 and a stated interest rate
Algernon Ltd. issued convertible 5-year bonds on August 1, 20X4 for $217,000. The bonds had a maturity value of $200,000 and a stated interest rate of 5% annually, compounded semi-annually (on February 1 and August 1) On August 1, 20X4, bonds of this type except without the conversion feature were selling at a price to yield 6% annually, compounded semi-annually.
Prepare the journal entry to record the issuance of Algernons convertible bonds. Please show all calculations thanks!
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