Prepare the journal entries for the conversion

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On January 1, 20x1, Mary Jane Company issues 1,000 of its 5-year 9% P2,000 face value convertible bonds at 110. Each bond carried a conversion privilege for thirty shares of Mary Jane Company's P100 par value share capital. Interest is payable semiannually on July 1 and January 1. The prevailing market rate of interest for similar bonds without the conversion privilege is 8%. On December 31, 20x1, the holder of 200 bonds exercised the conversion privilege.

Required:

Problem 1: Prepare the journal entries for the conversion.

Reference no: EM132904610

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