What is entry on january to record issuance of convertible

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On january 1 20x1 an entity issues bonds with face amount of P 4,000,000 for P 4,100,000. The bonds mature on December 31 20x4 and pay annual interest of 16%. The bonds can be converted into 10,000 ordinary shares of the entity with par value per share of P 300. On January 1 20x1 the bonds without the conversion features are selling at price which is reflect a yield rate of 18%. tAll of the bonds are converted into ordinary shares on january 1 20x3.

Problem A. What is the entry on january 1 20x1 to record the issuance of the convertible bonds?

Problem B. What is the entry on january 1 20x3 to record the conversation of the bonds?

Reference no: EM132728790

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