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Bond Conversion Moonstruck Corporation has $800,000 of 6 percent bonds outstanding. There is $40,000 of unamortized discount remaining onthese bonds after the July 1, 2014, semiannual interest payment. The bonds are convertible at the rate of 40 shares of $5 par value common stock for each $1,000 bond. On July 1, 2014, bondholders presented $600,000 of the bonds for conversion.
Required:
Question 1: Show necessary journal entries in the books of Moonstruck Corporation.
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