CONVERTIBLE BONDS Clarkston Inc. issued $1,000,000 oficina conve.docx - CONVERTIBLE BONDS Clarkston Inc issued $1,000,000 oficina convertible 10years 11

CONVERTIBLE BONDS Clarkston Inc. issued $1,000,000 oficina conve.docx

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CONVERTIBLE BONDS Clarkston Inc. issued $1,000,000 oficina convertible 10- years, 11% bonds on July 1, 2001. The discount in connection with the issue was $9,500, which is amortized monthly using the straight-line Basis. The debentures are convertible after 1 year into 5 shares oficina the company $1 par common stock forma each $1000 ir bonds. On August 1, 2002, $100,000 of the bonds we're converted. Interest has been accrued monthly and paid as due. Any interest accrued at the time oficina convertion of the bonds is paid un cash. Prepare the journal entries on Clarkstons books to r cord the conversi n, amortization, and interest on the bonds as ir August 1 and August 31, 2002. (Round to the nearest dollar.) EXERCISE 10-27 CONVERTIBLE BONDS Clarkston Inc
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Unformatted text preview: issued $1,000,000 of convertible 10 year, 11% bonda on July 1, 2001 The interest is payable semiannually on January and July 1 The dicunt in connection with the issue was $9.500, which is amortized monthly using the straight line buss the debentures are convertible after 1 year into 5 shares of the company's 1 par common stock for each $1,000 of honda On August 1, 2002,100,000 of the hands WERE CONVERTED Interest has been accrued monthly and paid as due Any interest accrued at the time of conversion of the bonds is paid in cash Prepare the journal entries on Charleston's books to record the conversion amor zation, and interest on the bonds as of August i and August 31, 2002. tund to the nearesi dollar...
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