Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2017, Marigold Corporation issued $4,380,000 of 10-year, 9% convertible debentures at 104, Interest is to be paid semiannually on June 30 and

image text in transcribedimage text in transcribed

On January 1, 2017, Marigold Corporation issued $4,380,000 of 10-year, 9% convertible debentures at 104, Interest is to be paid semiannually on June 30 and December 31, Each $1,000 debenture can be converted into 8 shares of Marigold Corporation $102 par value common stock after December 31, 2018 On January 1, 2019, $438,000 of debentures are converted into common stock, which is then selling at $112. An additional $438,000 of debentures are converted on March 31, 2019. The market price of the common stock is then $118. Accrued interest at March 31 will be paid on the next interest date Bond premium is amortized on a straight-line basis. Make the necessary journal entries for: (a) December 31, 2018. (c) March 31, 2019 (b) January 1, 2019(d) June 30, 2019 On January 1, 2017, Marigold Corporation issued $4,380,000 of 10-year, 9% convertible debentures at 104, Interest is to be paid semiannually on June 30 and December 31, Each $1,000 debenture can be converted into 8 shares of Marigold Corporation $102 par value common stock after December 31, 2018 On January 1, 2019, $438,000 of debentures are converted into common stock, which is then selling at $112. An additional $438,000 of debentures are converted on March 31, 2019. The market price of the common stock is then $118. Accrued interest at March 31 will be paid on the next interest date Bond premium is amortized on a straight-line basis. Make the necessary journal entries for: (a) December 31, 2018. (c) March 31, 2019 (b) January 1, 2019(d) June 30, 2019

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions