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Helken Corp. issued $1,000,000, 11%, 10 year convertible bonds on January 1, 2017. The bonds sold at face value and pay annual interest on January
Helken Corp. issued $1,000,000, 11%, 10 year convertible bonds on January 1, 2017. The bonds sold at face value and pay annual interest on January 1. each bond is worth $1,000 and each bond is convertible into 30 shares of Helken's $20 par value common stock. Helken Corp. closes its books on December 31st. Prepare the following journal entries. A) The issuance of bonds on January 1, 2017. B) Accrual of interest on December 31, 2017 The payment of interest on January 1, 2018. D) Convert all the bonds into common stock on January 1, 2018, when the market value of the common stock was $134 per share. (use the carrying value for book] value method)
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