Question
On January 1, 2017, Gottlieb Corporation issued $6,000,000 of 10-year, 4% convertible debentures at 104. Interest is to be paid semiannually on June 30 and
On January 1, 2017, Gottlieb Corporation issued $6,000,000 of 10-year, 4% convertible debentures at 104. Interest is to be paid semiannually on June 30 and December 31. After 2 years from the date of issue, the bonds can be converted into Common Stock as follows: For every $1,000 in bonds, the bond holder can convert the bond into 8 shares of common stock. On 1/1/19 $600,000 of bonds are converted: $600,000/$1,000 = 600 x 8 = 4,800 shares. On 3/31/19 an additional $600,000 of bonds are converted: $600,000/$1,000 = 600 x 8 = 4,800 shares. Bond premium is amortized on a straight-line basis
Using the above information, prepare the required journal entries on the following dates:
1. March 31, 2019
2. June 30, 2019
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