Question
On January 1, 2021, Platinum Corp. called its 10% convertible bonds for conversion. The $8,000,000 par bonds were converted into 320,000 shares of $20 par
On January 1, 2021, Platinum Corp. called its 10% convertible bonds for conversion. The $8,000,000 par bonds were converted into 320,000 shares of $20 par common stock.
On August 1, there was $800,000 of unamortized premium applicable to the bonds. The fair value of the common stock was $20 per share.
At conversion, there was no accrued interest on the bonds. Prepare the journal entry to account for the conversion.
Date I Account I DR. I CR. I
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Financial Accounting For Executives And MBAs
Authors: Wallace, Simko, Ferris
4th Edition
1618531980, 9781618531988
