Make journal entry to record issuance of convertible bonds

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Reference no: EM132756291

Question - Metlock Corporation sold 15-year, 8% convertible bonds (par value of $1,000) for $900,000 cash. Interest is payable annually. Each bond was convertible into 160 Metlock common shares, which were trading at $10 each on the day the bonds were sold. Similar straight bonds being sold in the market carried an interest rate of 11%. One thousand bonds were sold on July 1, 2020. Make journal entry to record the issuance of the convertible bonds.

Reference no: EM132756291

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