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don't copy other people's answers and I need the steps thank you The Lovejoy Company, a publicly accountable entity, issued $10,000,000, 7.5%, 10 year convertible
don't copy other people's answers and I need the steps thank you
The Lovejoy Company, a publicly accountable entity, issued $10,000,000, 7.5%, 10 year convertible bonds on December 31, 20x0. The bonds were issued at par. Financial analysts determined that the yield to maturity on similar risk bonds was 8%. Coupon payment dates are June 30 and December 31. The company's year end is December 31. Required - a) Prepare all journal entries relative to this bond issue for the years ended December 31, 20x0 and December 31, 20x1. b) On July 2, 20x6, 40% of the bondholders convert their bonds into common shares. The conversion resulted in a total of 80,000 common shares being issued. The shares were trading for $58 at the time. Prepare the entry to record the conversion. c) Prepare the journal entry at December 31, 20x6Step by Step Solution
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