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Prepare an effective-interest-method amortization table

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On December 31, 2020, Wilton Lid. issues 10 percent, 10-year convertible bonds with a maturity value of $6,000,000. The semi-annual interest dates are June 30 and December 31. The market interest rate is 9 percent, and the issue price of the bonds is 107.850.

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Question 1: Prepare an effective-interest-method amortization table for the first four semi-annual interest periods.

Proceeding, please journalize the transactions

a. Issuance of the bonds on December? 31, 2020. Credit Convertible Bonds Payable. ?(Record debits? first, then credits. Exclude explanations from journal? entries.)

b. Payment of interest on June? 30, 2021.

c. Payment of interest on December? 31, 2021.

d. Retirement of bonds with maturity value of $ 2 comma 000 comma 000 on July? 2, 2022. Wilton pays the call price of 107.00. ?(Hold all decimals in interim calculations. Round your answer to the nearest? dollar.)

e. Conversion by the bondholders on July? 2, 2022?, of bonds with maturity value of $ 3 comma 500 comma 000 into 42 comma 000 Wilton Ltd. common shares. ?(Hold all decimals in interim calculations. Round your answer to the nearest? dollar.)

Reference no: EM132576814

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