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On January 1,2023 , Lue Corp., issues $8,000,000 of 9% bonds. Proceeds from the issuance were $7,240,000. Interest is payable every July 1 and January

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On January 1,2023 , Lue Corp., issues $8,000,000 of 9% bonds. Proceeds from the issuance were $7,240,000. Interest is payable every July 1 and January 1 , and each $1,000 bond is convertible into 7 shares of Lue's $6.00 per share par value common stock. The bonds mature on January 1 , 2035 , and Lue amortizes bond discounts and premiums on a straight line basis. On January 1,2027, immediately after interest is paid, 40% of the bonds are converted into common stock. The entry to record this will include a credit to Paid-in Capital in Excess of Par Common of

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