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please answer specifically saved On August 2, 2021, Alpha-Omega Co. (AOC) signed an agreement with Richy Ltd. (Richy) to issue a $300,000, 6%, debenture to
please answer specifically
saved On August 2, 2021, Alpha-Omega Co. (AOC") signed an agreement with Richy Ltd. ("Richy") to issue a $300,000, 6%, debenture to Richy for proceeds of $285,000. The debenture was issued on August 2, 2021. At any time after 2025, the debenture is convertible into common shares, at the option of Richy. at the rate of two shares for each $100 bond. The maturity date of this debenture is August 1, 2041. The market interest rate for a regular, non-convertible debenture with similar risk factors is 10%. Interest is paid on February 1 and August 1. AOC uses the effective interest method and the gross method to account for the debenture. AOC's year-end is December 31. equired Prepare the relevant journal entries at the following dates: August 2, 2021; December 31, 2021; and February 1, 2022. February 1, 2031, after interest is paid, the entire debenture is converted. Prepare the journal try(s) for the conversion. Show your workStep by Step Solution
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