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Pawni Inc. needs Sh 2 Million for additional financing. On December 31, 2012, it borrowed money by issuing Sh 500,000, 11%, 10 year convertible bonds. The bond sold at face value ad pay semi-annual interest on January 1 and July 1. Each Sh. 1,000 bond is convertible into 30 shares of Pawni Inc. Sh 20 par value common stock.
Question 1: Prepare journal entries for;
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