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Bramble Inc, issued $5,850,000 of convertible 5 -year bonds on July 1, 2025. The bonds provide for 6% interest payable semiannually on January 1 and

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Bramble Inc, issued $5,850,000 of convertible 5 -year bonds on July 1, 2025. The bonds provide for 6% interest payable semiannually on January 1 and July 1 . The discount in connection with the issue was $105,000, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 15 shares of Bramble Inc:'s $1 par value common stock for each $1,000 of bonds. On October 1,2026, $702,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter 0 for the amounts. List all debit entries before credit entries.) (a) October 1,2026. (Assume the book value method is used.) (b) October 31,2026. (c) December 31,2026, including closing entries for end-of-year. No. Date Account Titles and Explanation Debit Credit (a) Oct. 1. Bonds Payable 702000 Paid in Copital in Exess of Par -Conmon Stock Common Stock \begin{tabular}{|r|} \hline 682020 \\ \hline 10530 \\ \hline 9450 \\ \hline \end{tabular} (To record conversion of bonds to common stock) Oct. 1. 2026 Interest Payble 21060 Cash 21060 (To record payment of interest due on converted bonds) Oct. (b) 31 . Interest Expense 9450 Descount on Bonds Payabie 9450 (To record amortization of discount on bonds) (To record accrual of interest payable on bonds) (To record amortization of discount on bonds) (To record accrual of interest payable on bonds) Dec: c) 31. Interest Expense 2026 Discount on Bonds Payable (To record amortization of discount on bonds) Dec. 31. 2026 Interest Expense 351000 18638 Interest Payable 351000 (To record accrual of interest payable on bonds) Dec. 31 , Income Summary 31590 2026 Interest Expense 31590 (To close expense account)

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