What are Culver journal entries to record extinguishment

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Question - On April 1, 2020, Culver Corp. sold 11,900 of its $1,000 face value, 15-year, 10% bonds at 87. Interest payment dates are April 1 and October 1. The company uses the effective interest method. On March 1, 2021, Culver extinguished 2,975 of the bonds by issuing 89,700 shares. At this time, the accrued interest was paid in cash to the bondholders whose bonds were being extinguished. In a separate transaction on March 1, 2021, 120,000 of the company's shares sold for $31 per share. What are Culver Corp.'s journal entries to record the extinguishment of 2,975 bonds by the issuance of common shares (no reversing entries are made) on March 1, 2021.

Reference no: EM132841335

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