A company is hoping to raise $10 million from a debt issuance.
Issue 2-year 4% convertible debentures at par on January 1, 2019. The debentures can be converted into 10 million $1 shares at maturity on December 31, 2020. Interest payments are made annually at the end of each year. Without the conversion feature, the debenture would be priced the same as option A which is 4%. What are the journal entries required.
In the books of company 1 Jan, 2019 Cash A/c .... Dr $10 million To 4% convertible debenture ..... Cr.$10 Million ( Being... View the full answer