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Your answer is partially correct. Buffalo Inc issued $3,790,000 of 10%. 10-year convertible bonds on June 1.2020. at 99 plus accrued interest The bonds were
Your answer is partially correct. Buffalo Inc issued $3,790,000 of 10%. 10-year convertible bonds on June 1.2020. at 99 plus accrued interest The bonds were dated April 1. 2020. with interest payable April 1and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2021. $1421250 of these bonds were converted into 34,000 shares of $18 par value common stock Accrued interest was paid in cash at the time of conversion. (a) Prepare the entry to record the interest expense at October 1, 2020. Assume that accrued interese payable was credited when the bands were issued Prepere the entry to record the conversion on April 1. 2021. (Book value method is used) Assume that the entry to record amortization of the bond discount and interest payment has been made
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