For transaction 2 I tried 1,550,000/(10*2)= 77500 and is incorrect.

Journa Return to question Date Jan 1,2021 On January 1, 2021, Madison Products issued $85 million of 6%, 10-year convertible bonds at a net price of $85.7 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, 2023, Madison notified bondholders of its intent to call the bonds at face value plus a 1% call premium on July 1, 2023. 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, In this question, combine the discount on the bonds with the face amount, and record the net amount as bonds payable. This is the "net method." When the net method is used the discount for premium) is amortized directly to the bonds payable account Required: Assume that Madison Products prepares its financial statements according to International Financial Reporting Standards using the net method. 1. & 2. Prepare the journal entries for the issuance of the bonds by Madison and interest payment for the June 30, 2021 3. Prepare the journal entries for the June 30, 2023, interest payment by Madison and the conversion of the bonds (book value method) Jun 30,2021 plete this question by entering your answers in the tabs below. and 2 Reg 3 re the journal entries for the issuance of the bonds by Madison and interest payment for the June 30, 2021. (I uired for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in 5.) Credit Debit 85,700,000 Date General Journal January 01, 2021 Cash Convertible bonds payable Equity - conversion option 84,150,000 1,550,000 June 30, 2021 Interest expense Convertible bonds payable Cash 2,550,000 Reg 1 and 2 Req3 >