Question
I am stuck at question (c) and (d), please help me, thank you! On January 1, 2017, Flounder Corporation issued $3,960,000 of 10-year, 7% convertible
I am stuck at question (c) and (d), please help me, thank you!
On January 1, 2017, Flounder Corporation issued $3,960,000 of 10-year, 7% convertible debentures at 104. Interest is to be paid semiannually on June 30 and December 31. Each $1,000 debenture can be converted into 8 shares of Flounder Corporation $100 par value common stock after December 31, 2018. On January 1, 2019, $396,000 of debentures are converted into common stock, which is then selling at $111. An additional $396,000 of debentures are converted on March 31, 2019. The market price of the common stock is then $116. Accrued interest at March 31 will be paid on the next interest date. Bond premium is amortized on a straight-line basis. Make the necessary journal entries for:
(a) | December 31, 2018. | (c) | March 31, 2019. | |||
(b) | January 1, 2019. | (d) | June 30, 2019.
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