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Current Attempt in Progress Crane Inc. issued $3,690,000 of 9%,10-year convertible bonds on June 1, 2025, at 97 plus accrued interest. The bonds were dated
Current Attempt in Progress Crane Inc. issued $3,690,000 of 9%,10-year convertible bonds on June 1, 2025, at 97 plus accrued interest. The bonds were dated April 1, 2025, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2026, $1,383,750 of these bonds were converted into 34,000 shares of $19 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) Prepare the entry to record the interest expense at October 1, 2025. Assume that accrued interest payable was credited when the bonds were issued. (b) Prepare the entry to record the conversion on April 1, 2026. (Book value method is used.) Assume that the
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