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On January 1, 2021, Madison Products issued $41.7 million of 6%, 10-year convertible bonds at a net price of $42.67 million. Madison recently issued similar,

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On January 1, 2021, Madison Products issued $41.7 million of 6%, 10-year convertible bonds at a net price of $42.67 million. Madison recently issued similar, but nonconvertible, bonds at 99 (that is, 99% of face amount). The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 30 shares of Madison's no par common stock. Madison records interest by the straight line method On June 1 2023. Madison notified bondholders of its intent to call the bonds at face value plus a 1% call premium on July 1, 2023. By June 30, all bondholders had chosen to convert the bonds into shares as of the Interest payment date. On June 30, Madison paid the semiannual interest and issued the requisite number of shares for the bonds being converted Required: 1. & 2. Prepare the journal entries for the issuance of the bonds by Madison and interest payment for June 30, 2021 3. Prepare the journal entries for the June 30, 2023. Interest payment by Madison and the conversion of the bonds (book value method earch Journal entry worksheet STAFF 5 88 points Record the issuance of the bonds by Madison. eBook come Note: Enter debits before credits. References General Journal Debit Credit Date January 01, 2021 Record entry Clear entry View general journal SEX search See all photos See + Add to Journal entry worksheet 5.88 points Record the interest payment. eBook Note: Enter debits before credits References General Journal Debit Credit Date June 30, 2021 Record entry Clear entry View general journal Ich View transaction list Journal entry worksheet 5.88 points eBook Record the interest payment. Hint References Note: Enter debits before credits. General Journal Debit Credit Date June 30, 2023 Record entry Clear entry View general Journal arch View transaction list Journal entry worksheet 5.88 points eBook Record the conversion of the bonds. References Note: Enter debits before credits General Journal Debit Credit Date June 30, 2023 Record entry Clear entry View general journal

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