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I currently have the correct answers for everything except the requirement 3 part 2. Keep formatting same and please put appropriate entry. On January 1,
I currently have the correct answers for everything except the requirement 3 part 2. Keep formatting same and please put appropriate entry.
On January 1, 2018, Gless Textiles issued $28 million of 7%, 10-year convertible bonds at 101. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of Gless's no par common stock. Bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). Century Services purchased 20% of the issue as an investment. Required: 1. Prepare the journal entries for the issuance of the bonds by Gless and the purchase of the bond investment by Century. 2. Prepare the journal entries for the June 30, 2022, interest payment by both Gless and Century assuming both use the straight-line method. 3. On July 1, 2023, when Gless's common stock had a market price of $33 per share, Century converted the bonds it held. Prepare the journal entries by both Gless and Century for the conversion of the bonds (book value method). & Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entries for the issuance of the bonds by Gless and the purchase of the bond investment by Century. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Credit Debit 28,280,000 January 01, 2018 Cash Convertible bonds payable Premium on bonds payable 28,000,000 280,000 2 January 01, 2018 Investment in convertible bonds 5,600,000 56,000 Premium on bond investment Cash 5,656,000 Required 1 Required 2 Required 3 On July 1, 2023, when Gless's common stock had a market price of $33 per share, Century converted the bonds it held. Prepare the journal entries by both Gless and Century for the conversion of the bonds (book value method). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less A No No Date General Journal Debit Credit Required 1 Required 2 Required 3 Prepare the journal entries for the June 30, 2022, interest payment by both Gless and Century assuming both use the straight-line method. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Date General Journal Credit No 1 Debit 966,000 June 30, 2022 Interest expense Premium on bonds payable Cash 14,000 980,000 June 30, 2022 Cash 2,800,000 Interest revenue Premium on bond investment 2,797,200 X 2,800
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