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On July 1 , 2 0 1 9 , when its $ 1 par value common stock was selling for $ 6 6 per share,
On July when its $ par value common stock was selling for $ per share, Sheridan Corp. issued $ of convertible debentures due in years. The conversion option allowed the holder of each $ bond to convert the bond into shares of the corporation's common stock. The debentures were issued for $ The corporation believes the difference between the par value and the amount paid is attributable to the conversion feature. On January the corporation's common stock was split for and the conversion rate for the bonds was adjusted accordingly. On January when the corporation's $ par value common stock was selling for $ per share, holders of of the convertible debentures exercised their conversion options. The corporation uses the straightline method for amortizing any bond discounts or premiums. a Prepare in general journal form the entry to record the original issuance of the convertible debentures. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts. Account Titles and Explanation Debit Credit b Prepare in general journal form the entry to record the exercise of the conversion option, using the book value method. Show supporting computations in good form. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter O for the amounts. Account Titles and Explanation Debit Credit
On July when its $ par value common stock was selling for $ per share, Sheridan Corp. issued $ of convertible debentures due in years. The conversion option allowed the holder of each $ bond to convert the bond into shares of the corporation's common stock. The debentures were issued for $ The corporation believes the difference between the par value and the amount paid is attributable to the conversion feature. On January the corporation's common stock was split for and the conversion rate for the bonds was adjusted accordingly. On January when the corporation's $ par value common stock was selling for $ per share, holders of of the convertible debentures exercised their conversion options. The corporation uses the straightline method for amortizing any bond discounts or premiums.
a Prepare in general journal form the entry to record the original issuance of the convertible debentures. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts.
Account Titles and Explanation
Debit
Credit
b Prepare in general journal form the entry to record the exercise of the conversion option, using the book value method. Show supporting computations in good form. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter O for the amounts.
Account Titles and Explanation
Debit
Credit
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