On January 1, 2017, Flint Corporation issued $4,060,000 of 10-year, 9% convertible debentures at 104. Interest is to be paid semiannually on June 30 and December 31. Each $1,000 debenture can be converted into 8 shares of Flint Corporation $101 par value common stock after December 31, 2018.
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On January 1, 2019, $406,000Â of debentures are converted into common stock, which is then selling at $111. An additional $406,000Â of debentures are converted on March 31, 2019. The market price of the common stock is then $117. Accrued interest at March 31 will be paid on the next interest date.
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Bond premium is amortized on a straight-line basis.
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Make the necessary journal entries for:
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(a)December 31, 2018.(c)March 31, 2019.(b)January 1, 2019.(d)June 30, 2019.
Record the conversions using the book value method.
Answers
Status NEW
Posted 09 May 2017 03:05 AM
My Price 6.00
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