Question
On March 1, 2018, the Miner Company received authorization to issue $160,000 in debentures. The bonds have a stated interest rate of 6%, and they
On March 1, 2018, the Miner Company received authorization to issue $160,000 in debentures. The bonds have a stated interest rate of 6%, and they mature in ten years. Interest is payable each February 28th and August 31st. On October 31, 2021, Miner issued 90 of the bonds and received cash from the lender in the total amount of $98,500. Then, on May 1, 2025, the bondholders converted the bonds into 8,800 shares of Miners $10 par common stock. Miner paid all interest due to May 1st in cash. Miner has a fiscal year-end that ends on each June 30th. Prepare ONLY those journal entries that the company would make with relating to the bonds on MARCH 1, 2018, OCTOBER 31, 2021, FEBRUARY 28, 2022, and MAY 1, 2025.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started