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4. On January 1, year 1 Donovan Inc. issued $ 12 million of 8.8% convertible bonds at 104. The bonds pay interest on Jun
Posted: Wed Mar 09, 2022 8:18 am
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- 4 On January 1 Year 1 Donovan Inc Issued 12 Million Of 8 8 Convertible Bonds At 104 The Bonds Pay Interest On Jun 1 (45.09 KiB) Viewed 39 times
4. On January 1, year 1 Donovan Inc. issued $ 12 million of 8.8% convertible bonds at 104. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 100 shares of common stock. Similar non-convertible bonds sell at 102. a. Prepare the journal entry for the issuance of the bonds on Jan. 1, year 1. b. When the unamortized premium had a balance of $ 160,000 the bonds were converted. Prepare the journal entry for Donovan.