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The December 3 1 , 2 0 2 5 , balance sheet of Tamarisk Corp. is as follows. Account Titles and Explanation ( To record
The December balance sheet of Tamarisk Corp. is as follows. Account Titles and Explanation
To record interest expense.
Discount on Bonds Payable
Paidin Capital in Excess of Par Common Stock
To record the conversion.
callable, convertible bonds payable semiannual interest
dates April and October ; convertible into shares of $
par value common stock per $ of bond principal; maturity date April $
Discount on bonds payable
On March Tamarisk Corp. called all of the bonds as of April for the principal plus interest through April By April all
bondholders had exercised their conversion to common stock as of the interest payment date. Consequently, on April Tamarisk
Corp. paid the semiannual interest and issued shares of common stock for the bonds. The discount is amortized on a straightline basis.
Tamarisk uses the book value method.
Prepare the entries to record the interest expense and conversion on April Reversing entries were made on January
List all debit entries before credit entries. 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.
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