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I know the answer $141000 and $43200 but I don't not how to get there. I need a detailed explanation including the name of the
I know the answer $141000 and $43200 but I don't not how to get there. I need a detailed explanation including the name of the accounts and if possible the journal entries for each. Thanks
Chang Corporation issued $6,000,000 of 9%, ten-year convertible bonds on July 1, 2017 at 96.1 plus accrued interest. The bonds were dated April 1, 2017 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2018, $1,200,000 of these bonds were converted into 500 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. 46. If "interest payable" were credited when the bonds were issued, what should be the amount of the debit to "interest expense" on October 1, 2017? a. $129,000. b. $135,000. c. $141,000. d. $270,000. What should be the amount of the unamortized bond discount on April 1, 2018 relating to the bonds converted? a. $46,800. b. $43,200. c. $23,400. d. $44,400. What was the effective interest rate on the bonds when they were issued? a. 9% b. Above 9% c. Below 9% d. Cannot determine from the information givenStep by Step Solution
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