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Can you help me with these questions Problem 16-02 Your answer is partially correct. Try again. Carla Inc. issued $2,760,000 of convertible 10-year bonds on
Can you help me with these questions
Problem 16-02 Your answer is partially correct. Try again. Carla Inc. issued $2,760,000 of convertible 10-year bonds on July 1, 2020. The bonds provide for 13% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $58,800, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 9 shares of Carla Inc.'s $100 par value common stock for each $1,000 of bonds. On August 1, 2021, $276,000 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 account titles and enter o for the amounts.) (a) August 1, 2021. (Assume the book value method is used.) (b) August 31, 2021. (c) December 31, 2021, including closing entries for end-of-year. No. Date Account Titles and Explanation Debit Credit (a) Aug. 1, 2021 Bonds Payable Discount on Bonds Payable Common Stock Paid-in Capital in Excess of (To record the issuance of shares of common stock and the write-off of the discount on bonds payable.) Aug. 1, 2021 Interest Payable Cash (To record payment in cash of interest accrued on bonds.) Aug. 1, 2021 Interest Payable TCash (To record payment in cash of interest accrued on bonds.) (b) Aug. 31, 2021 Interest Expense TDiscount on Bonds Payable (To record amortization of discount on bonds.) Aug. 31, 2021 Interest Expense Interest Payable (To record accrual of interest on bonds.) (c) Dec 31, 2021 Income Summary Interest Expense (To dose expense account) Click If you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT Question Attempts: UnlimitedStep by Step Solution
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