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On January 1, 2020, Culver Corporation issued $3,600,000 of 10-year, 8% convertible debentures at 104. Interest is to be paid semiannually on June 30 and
On January 1, 2020, Culver Corporation issued $3,600,000 of 10-year, 8% 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 Culver Corporation $100 par value common stock after December 31 , 2021. On January 1,2022,$360,000 of debentures are converted into common stock, which is then selling at $109. An additional $360,000 of debentures are converted on March 31, 2022. The market price of the common stock is then $114. 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)December31,2021(c)March31,2022. (b) January 1,2022. (d) June 30,2022
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