Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help - will rate Wildhorse Co. issued $4,149,000 of 12%, 5-year convertible bonds on December 1, 2020 for $4,171,620 plus accrued interest. The bonds
please help - will rate
Wildhorse Co. issued $4,149,000 of 12%, 5-year convertible bonds on December 1, 2020 for $4,171,620 plus accrued interest. The bonds were dated April 1, 2020 with interest payable April 1 and October 1. Bond premium is amortized each interest period on a straight-line basis. Wildhorse Co. has a fiscal year end of September 30. On October 1, 2021, $2,074,500 of these bonds were converted into 29,000 shares of $15 par common stock. Accrued interest was paid in cash at the time of conversion. Prepare the entry to record the interest expense at April 1, 2021. Assume that interest payable was credited when the bonds were issued. (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. Round answers to o decimal places, e.g. 5,725.) Debit Credit Date Account Titles and Explanation Apr. 1, 2021 Prepare the entry to record the conversion on October 1, 2021. Assume that the entry to record amortization of the bond premium and interest payment has been made. (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. Round answers to 0 decimal places, e.g. 5,725.) Date Account Titles and Explanation Debit Credit Oct. 1, 2021 Click if you would like to show Work for this question: Open Show Work
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