question archive On January 2, 20x5, a company issues convertible bonds maturing on December 31, 20x19
On January 2, 20x5, a company issues convertible bonds maturing on December 31, 20x19
Subject:AccountingPrice: Bought3
On January 2, 20x5, a company issues convertible bonds maturing on December 31,
20x19. On the maturity date, these bonds are mandatorily convertible into common
shares. The bonds have a face value of $15,000,000 and pay a coupon of 3% on June 30
and Dec 31. The bonds were issued to yield 3.8%. The cash proceeds of $14,725,800
received on the bond issue were credited to the Convertible Bonds Payable Account and
the cash coupons paid were debited to Interest expense.
Required – Prepare the adjusting journal entries required at December 31, 20x5.
