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can someone plz help me with this problem I'm stuck! On January 1. 2022 Valentino's Pirra isvues 5750.000 of 546 cemertible bonds thut mature inusn
can someone plz help me with this problem I'm stuck!
On January 1. 2022 Valentino's Pirra isvues 5750.000 of 546 cemertible bonds thut mature inusn IOGs and do not contain a cash settlement clase. Each $1.000 bond is cenvertible into 75 shares of the ccompang"s 51 parzalye Gommon sook. The current market price of Valentings sock is 535 fer share. Valetitino's uses the straight-line mathod to amortise premiums and discounts. On Jely 1th2028 holders of the bonds converted their holdings into commen stosk. The common stock was trading foe $.52 per share on that date. Valentino's ases the book value method so account for bond conversions. Required: 1. Prepare the journal entry to record the bond isvuance on Jamuary 1,2022. 2. Prepare the necessary fournal entries on June 30 and Deccmber 31,2022 . 3. Prepare the necessary joumal entry on July 1,2425.2028Step by Step Solution
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