Question 1 22 View Policies Show Attempt History Current Attempt in Progress On July 1, 2020, Marigold Ltd., which follows ASPE, issued 1,000 convertible, five-year, $1,000 bonds. Each bond is convertible into 20 common shares at the bondholder's option. On the date of issuance, the bond's conversion rights were valued at $50,000. On July 1, 2023, the bonds had a carrying value on Marigold's books of $969,000, and the fair market value of the bonds without the convertible option was $977,000 Your answer is partially correct. Assume all the bondholders voluntarily decided to convert their bonds to common shares on July 1.2023. Prepare the journal entry to record the conversion. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Debit Credit Account Titles and Explanation Loss on Retirement of Bonds 50000 14/assignments/3716131 * Your answer is incorrect. Assume instead that Marigold paid the bondholders an incentive of $18,000 to convert their bonds to common shares, and that all the bondholders convert their bonds to common shares on July 1, 2023. Prepare the journal entry to record the conversion. (Credit account titles are automatically indented when the amount is entered. Do not indent manually Account Titles and Explanation Debit Credit e Textbook and Media Attempts: 1 of 15 used Su Save for Later Question 1 22 View Policies Show Attempt History Current Attempt in Progress On July 1, 2020, Marigold Ltd., which follows ASPE, issued 1,000 convertible, five-year, $1,000 bonds. Each bond is convertible into 20 common shares at the bondholder's option. On the date of issuance, the bond's conversion rights were valued at $50,000. On July 1, 2023, the bonds had a carrying value on Marigold's books of $969,000, and the fair market value of the bonds without the convertible option was $977,000 Your answer is partially correct. Assume all the bondholders voluntarily decided to convert their bonds to common shares on July 1.2023. Prepare the journal entry to record the conversion. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Debit Credit Account Titles and Explanation Loss on Retirement of Bonds 50000 14/assignments/3716131 * Your answer is incorrect. Assume instead that Marigold paid the bondholders an incentive of $18,000 to convert their bonds to common shares, and that all the bondholders convert their bonds to common shares on July 1, 2023. Prepare the journal entry to record the conversion. (Credit account titles are automatically indented when the amount is entered. Do not indent manually Account Titles and Explanation Debit Credit e Textbook and Media Attempts: 1 of 15 used Su Save for Later