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On January 1 , 2 0 X 0 Pray Shah Limited issued $ 1 5 , 0 0 0 , 0 0 0 of 1
On January X Pray Shah Limited issued $ of year debenture at Investment bankers believe that the debentures would have sold at without the conversion privilege. Interest is to be paid semiannually on June th and December Each $ debenture can be converted into ten of Pray Shah Limited's nopar common shares after December X On January x $ of the debentures are converted into common shares, which were selling at An additional $ of the debentures are converted on March X The market price of the common shares is then $ Accrued interest at March will be paid when the bond is converted. The bond premium is to be amortized on a straightline basis. Pray Shah Limited Shows Both the Equity and Liability Componen Prepare the journal entries on January X Prepare the journal entries on December X Prepare the journal entries on January X assuming the cost basis. Prepare the journal entries on March X assuming the cost basis. Prepare the journal entries on June Xts
On January X Pray Shah Limited issued $ of year debenture at
Investment bankers believe that the debentures would have sold at without the conversion privilege. Interest is to be paid semiannually on June th and December Each $ debenture can be converted into ten of Pray Shah Limited's nopar common shares after December X
On January x $ of the debentures are converted into common shares, which were selling at An additional $ of the debentures are converted on March X
The market price of the common shares is then $ Accrued interest at March will be paid when the bond is converted. The bond premium is to be amortized on a straightline basis. Pray Shah Limited Shows Both the Equity and Liability Componen Prepare the journal entries on January X
Prepare the journal entries on December X
Prepare the journal entries on January X assuming the cost basis.
Prepare the journal entries on March X assuming the cost basis.
Prepare the journal entries on June Xts
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