On January 1, 2020, Burner Textiles issued $45 million of 6%, 10-year convertible bonds at 94. The bonds pay interest on semi-annually June 30 and December 31. Each $1,000 bond is convertible into 60 shares of Burners $1 par common stock. Avi Services purchased 20% of the issue as an investment.

what are the journal entry for the issuance of the bonds by Liveson.

what are the journal entry for the June 30, 2025, interest payment by Liveson assuming they use the straight-line method.

3. On July 1, 2026, when Burners common stock had a market price of $33 per share, Avi converted the bonds it held. Prepare the journal entry by Burner for the conversion of the bonds (book value method).