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Not sure if this is correct. I'm missing one section under part b which I'm not sure if it should be left blank or not.
Not sure if this is correct. I'm missing one section under part b which I'm not sure if it should be left blank or not. It's wanting to put a debit entry. Please use the following entry options. Thank you!
Recording Entries for Convertible Bonds On January 1, 2020, Sierra Corp. issued 500, $1,000, 6% convertible bonds at face value. Each bond is convertible into 15 shares of $1 par value common stock. As an inducement to convert the bonds into common stock in 2022 prompted by a drop in interest rates, the company offered $35,000 to bondholders, payable upon conversion. All of the bondholders converted to common stock in June of 2022. Required a. Provide the entry for issuance of bonds on January 1, 2020. b. Provide the entry for Sierra Corp. for conversion of the bonds in June of 2022, using the book value method. Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Round your answers to the nearest whole dollar. Account Name Dr. Cr. 500,000 0 Date a. Jan. 1, 2020 Cash Bonds Payable b. June, 2022 Bonds Payable 0 500,000 500,000 0 0 0 Cash 0 Common Stock 0 35,000 7,500 457,500 Paid-in Capital in Excess of Par-Common Stock - 0 Please answer all parts of the question. Cash Inventory Equipment Land Deferred Revenue Bonds Payable Discount on Bonds Payable Discount and Debt Issuance Costs Premium on Bonds Payable Fair Value Adjustment-Bonds Payable Note Payable Discount on Note Payable Premium on Note Payable Fair Value Adjustment,Note Payable Interest Payable Common StockStep by Step Solution
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