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Prepare the journal entry at conversion date

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Reference no: EM133004501

Question - On January 1, 2021, the company issued 10% 3-year 1,000,000 convertible bond at 102. Each 1,000 bond is convertible into 8 shares with par value of 100 per share. On issuance date, the bonds were selling at 98 without the conversion option. The entity incurred 50,000 transaction cost on the issuance. On December 31, 2022, the bonds were converted into shares incurring an issuance cost of 80,000.

Requirements -

1. Prepare the amortization table.

2. Prepare the journal entry at conversion date.

Reference - Intermediate Accounting 2 by Millan: Notes and Bonds Payable.

Reference no: EM133004501

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