Exercise 14-26 Convertible bonds: induced conversion [LO14-5) On January 1, 2018, Madison Products issued $420 million of 6%, 10-year convertible bonds at a net price of $43.00 million. Madison recently issued similar, but nonconvertible, bonds at 99 (that is, 99% of face amount). The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 30 shares of Madison's no par common stock, Madison records interest by the straight-line method. On June 1, 2020, Madison notified bondholders of its intent to call the bonds at face value plus a 1% call premium on July 1, 2020. By June 30 all bondholders had chosen to convert their bonds into shares as of the interest payment date. On June 30, Madison paid the semiannual interest and issued the requisite number of shares for the bonds being converted, Required: 1. & 2. Prepare the journal entry for the issuance of the bonds by Madison and interest payment for the June 30, 2018 3. Prepare the journal entries for the June 30, 2020, interest payment by Madison and the conversion of the bonds (book value method) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Prepare the journal entry for the issuance of the bonds by Madison and interest payment for the June 30, 2018.(If no entry is required for a transaction/event, select "No joumal entry required in the first account field. Enter your answers in whole dollars.) View transaction list Req 1 and 2 Reg 3 Prepare the journal entry for the issuance of the bonds by Madison and interest payment for the June 30, 2018.(If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet Record the issuance of the bonds by Madison Note Enter debits before credits General Journal Debit Credit Date January 01, 2018 new 1. & 2. Prepare the journal entry for the issuance of the bonds by Madison and interest payment for the June 30, 2018 3. Prepare the journal entries for the June 30, 2020, Interest payment by Madison and the conversion of the bonds (book value method Complete this question by entering your answers in the tabs below. Reg 1 and 2 Prepare the journal entry for the issuance of the bonds by Madison and interest payment for the June 30, 2018.(If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet YM . 1. & 2. Prepare the journal entry for the issuance of the bonds by Madison and Interest payment for the June 30, 2018 3. Prepare the journal entries for the June 30, 2020, Interest payment by Madison and the conversion of the bonds (book value method) Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req3 Prepare the journal entries for the June 30, 2020, interest payment by Madison and the conversion of the bonds (book value method). (1f no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet Record the interest payment. Note: Enter debits before credits Date General Journal Debit Credit June 30, 2020 we 1. & 2. Prepare the journal entry for the issuance of the bonds by Madison and Interest payment for the June 30, 2018 3. Prepare the journal entries for the June 30, 2020. Interest payment by Madison and the conversion of the bonds (book value method). Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Prepare the journal entries for the June 30, 2020, interest payment by Madison and the conversion of the bonds (book value method). (IF no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet Record the conversion of the bonds. Noter Enter debits before credits General Journal Credin Jun 30, 2020