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On January 1 , 2 0 2 4 , Fowl Products issued $ 8 0 million of 6 % , 1 0 - year convertible
On January Fowl Products issued $ million of year convertible bonds at a net price of $ million. Fowl recently issued similar, but nonconvertible, bonds at that is of face amount The bonds pay interest on June and December Each $ bond is convertible into shares of Fowls no par common stock. Fowl records interest by the straightline method. On June Fowl notified bondholders of its intent to call the bonds at face value plus a call premium on July By June all bondholders had chosen to convert their bonds into shares as of the interest payment date. On June Fowl paid the semiannual interest and issued the requisite number of shares for the bonds being converted. Required: Prepare the journal entry for the issuance of the bonds by Fowl. Prepare the journal entries for the June interest payment by Fowl and the conversion of the bonds book value method
On January Fowl Products issued $ million of year convertible bonds at a net price of $ million. Fowl recently issued similar, but nonconvertible, bonds at that is of face amount The bonds pay interest on June and December Each $ bond is convertible into shares of Fowls no par common stock. Fowl records interest by the straightline method.
On June Fowl notified bondholders of its intent to call the bonds at face value plus a call premium on July By June all bondholders had chosen to convert their bonds into shares as of the interest payment date. On June Fowl paid the semiannual interest and issued the requisite number of shares for the bonds being converted.
Required:
Prepare the journal entry for the issuance of the bonds by Fowl.
Prepare the journal entries for the June interest payment by Fowl and the conversion of the bonds book value method
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