question archive In January 20X6, Sterling issued $2,000,000 of 20-year, 7%, convertible bonds that pay interest annually on December 31

In January 20X6, Sterling issued $2,000,000 of 20-year, 7%, convertible bonds that pay interest annually on December 31

Subject:AccountingPrice: Bought3

In January 20X6, Sterling issued $2,000,000 of 20-year, 7%, convertible bonds that pay interest annually on December 31. The bonds were issued when the market rate was 7.5%. Bond issuance costs were $231,000. 15 years after 20X6, the bonds can be converted to ordinary shares at the rate of four $100 bonds for two ordinary shares. The bonds sold for $2,204,771.
The sale of the bonds was recorded in Sterling's accounting records as follows:
DR Cash
CR Convertible bonds payable
DR Bond transaction expenses CR Cash
2,204,771
231,000
231,000
Interest payments are due on December 31. Due to a computer problem, the December 31, 20X6, payments were not made.


please provide journal entries

pur-new-sol

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