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On January 1, 2021, Madison Products issued $60 million of 8%, 15-year convertible bonds at a net price of $60.6 million. Madison recently issued similar,

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On January 1, 2021, Madison Products issued $60 million of 8%, 15-year convertible bonds at a net price of $60.6 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 their 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 In this question, combine the discount on the bonds with the face amount, and record the net amount as bonds payable. This is the "net method." When the net method is used the discount (or premium) is amortized directly to the bonds payable account Required: Assume that Madison Products prepares its financial statements according to International Financial Reporting Standards using the net method. 1. & 2. Prepare the journal entries for the issuance of the bonds by Madison and interest payment for the 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) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Prepare the journal entries for the issuance of the bonds by Madison and Interest payment for the June 30, 2021. (If no ent for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet Reg 1 and 2 Reg 3 Prepare the journal entries for the issuance of the bonds by Madison and Interest payment for the June 30, 2021. (If no ent for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet 2 Record the issuance of the bonds by Madison Notes Enter debits before credits Dato General Journal Debit Credit January 01, 2021 Racord entry Clear entry View general Journal Req 1 and 2 Reg 3 Prepare the journal entries for the issuance of the bonds by Madison and interest payment for the June 30, 2021. (If no e for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet Record the interest payment. Note: Enter debits before credits Date June 30, 2021 General Journal Debit Credit Record entry Clear entry View general Journal DO Req 1 and 2 Reg 3 Prepare the journal entries for the June 30, 2023, interest payment by Madison and the conversion of the bonds (book va (If no entry is required for a transaction/event, select "No journal entry required in the first account held. Enter your ans dollars.) View transaction list Journal entry worksheet 2 Record the interest payment. Note: Enter debits before credits Data June 30, 2023 General Journal Debit Credit Record entry Clear entry View general Journal

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