On January 1, 2024, Madison Products issued $75 million of 8%, 10-year convertible bonds at a net price of $75.5 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 Madisons no par common stock.
• Madison records interest by the straight-line method.
• On June 1, 2026, Madison notified bondholders of its intent to call the bonds at face value plus a 1% call premium on July 1, 2026.
• 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.

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, 2024.

3. Prepare the journal entries for the June 30, 2026, interest payment by Madison and the conversion of the bonds (book value method).

3 6.68 On January 1, 2024 Madison Productssued $75 million of % 10-year convertible bonds at a net price of $75.5 Madison recently but nonconvertible bonds 99 90% The bonds pay interest on June 30 and December 31 Each $1000 bond is convenble Madison record to 30 shares of Madison's pock On June 1, 2020 Madison noted bondholders of es tent to call the bonds at face value plus a call on Ju 2020 On June 30, Madison paid the seal interest and the requsite number of shares for the bonding converted Assume that Madison Products preparms estnancial statements according to international Francial Reporting Standards using the net 1&2 themes for the ance of the bonds by Madison and forme June 30, 2004 3. Prepare the joue ens for the June 30, 2006 est peyment by Madison and the conversion of the bonds book ve Complete this question by entering your answers in the tabl 73 C Req 1 and 2 Prepare the journal entries for the June 30, 2026, interest payment by Madison and the conversion of the bonds (book value method). Note: If no entry is required 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, 2026 General Journal Debit Credit