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On January 1 , 2 0 2 3 , MTS Corporation issued a series of 1 0 0 convertible bonds, maturing in 5 years. The
On January MTS Corporation issued a series of convertible bonds, maturing in years. The face amount of each bond was
$ MTS received $ for the bond issue. The bonds paid interest every December at ; the market interest rate for bonds
with a comparable level of risk was The bonds were convertible to common shares at a rate of common shares per bond.
MTS amortized bond premiums and discounts using the effective interest method, and the company's yearend was December
MTS follows ASPE.
On January of the bonds were converted into common shares. On June another bonds were converted into
common shares. The bondholders chose to forfeit the accrued interest on these bonds.
On January when the fair value of the bonds was $ due to a decrease in market interest rates, a conversion inducement
of $ bond was offered to the remaining bondholders to convert their bonds to common shares. All of the remaining bonds were
converted into common shares at this time.
a Prepare the journal entry at January
b Prepare the journal entry at December
c Prepare the journal entry at January
d Prepare the journal entry at June
e Prepare the journal entry at December
f Prepare the journal entry at January
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