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HW Unit AutoSaver Insert Draw s Page Layout . Formulas Home Data Review View Developer Calibri (Body) BIU = = = 1 EEEE a Wrap
HW Unit AutoSaver Insert Draw s Page Layout . Formulas Home Data Review View Developer Calibri (Body) BIU = = = 1 EEEE a Wrap Text Merge & Center aA General $ % 2 A72 1 x fc 56 51 Exercise Z Clear Water Corp. issued $100,000 of 7% 5 year convertible bonds on January 1, 2015. The bonds were issued at 104 and pay interest on June 30 and December 31 of each year. By December 31, 2018, the market price of the stock had increased, and the investors decided to convert the bonds into stock. Each $1,000 bond is convertable into 30 shares of the $2 par value common 52 stock. 54 Determine the balance of the Premium on the bonds and prepare the journal entry to record the conversion of the bonds. GENERAL JOURNAL POST REF. Date Account/Description Debit Credit DAN 68 Exercise ZZ Onl y 1, 2018, Warden decided to invest in the 15 year bonds of use Stevens. The bonds pay interest online and 69 December 31 a n nually. The $150,000 of bonds were purchased 97 Wwden intends to hold the bonds until maturity 70 1. Journalize the purchase of the investment on January 1, 2018 71 2. Journaline the first interest payment on the investment on June 30, 2018 72 3. Journalize the final interest payment and the maturity of the investment. GENERAL JOURNAL POST REF. Account Description Credit Sheet1
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