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On August 1, YR01 Ford Inc. issued $10,000 of 6% convertible bonds payable at 96 . These 5-year bonds are dated July 1 , YR01
On August 1, YR01 Ford Inc. issued $10,000 of 6% convertible bonds payable at 96 . These 5-year bonds are dated July 1 , YR01 and are convertible into $5 par common stock at the rate of 20 common shares per $1,000 bond. Bond interest is paid each July 1 and January 1. The year end for Ford year is December 31st, and the company's accounting policy is to accrue interest and amortize discount/premium once each year at December 31st in a single adjusting journal entry. Discount or premium are amortized on a The entry to record the issuance of the bonds on August 1, YR01 is (round final answer to nearest dollar): e. None of the answers provided is correct. The adjusting journal entry at December 31, YR01 to record accrued interest and amortize discount/premium is (round final answer to nearest dollar): 2. None of the answers provided is correct
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