Question
On January 1, 2020, Company L issues $3,000,000 of 5-year convertible bonds with a stated interest rate of 4 percent, payable annually on December 31.
On January 1, 2020, Company L issues $3,000,000 of 5-year convertible bonds with a stated interest rate of 4 percent, payable annually on December 31. The bonds are convertible into common stock at a conversion rate of 20 shares per $1,000 bond.
Prepare the journal entries to record the issuance of the bonds and the interest payment on December 31, 2020.
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
