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On January 1, 2021, Madison Products issued $40.7 million of 10%, 10 year convertible bonds at a net price of $41.57 million Madison recently issued

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On January 1, 2021, Madison Products issued $40.7 million of 10%, 10 year convertible bonds at a net price of $41.57 million Madison recently issued similar, but nonconvertible, bonds at 99 (that is, 99% of face amount). The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 30 shares of Madison's no par common stock. Madison records interest by the straight-line method On June 1, 2023, Madison notified bondholders of its intent to call the bonds at face value plus a 1% call premium on July 1, 2023. By June 30, al bondholders had chosen to convert their bonds into shares as of the interest payment date. On June 30, Madison paid the semiannual interest and issued the requisite number of shares for the bonds being converted, Required: 1. & 2. Prepare the journal entries for the issuance of the bonds by Madison and interest payment for June 30, 2021 3. Prepare the journal entries for the June 30, 2023, interest payment by Madison and the conversion of the bonds book value method) Record the issuance of the bonds by Madison Note: Enter debits before credits General Journal Debit Credit January 01, 2011 Record entry Clear entry View general journal transaction/event, select "No journal entry required in the first account field. Enter View transaction list Journal entry worksheet Record the interest payment. Note: Enter debits before credits Date General Journal Debit Credit June 30, 2021 Record the interest payment. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2023 Record entry Clear entry View general journal Raq 1 and 2 ( 12 Record the conversion of the bonds. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2023 rences Record entry Clear entry View general journal Reg 1 and 2

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