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question please show your work so that i can understand what is involvedin getting t 4277537

Question

Please show your work so that I can understand what is involvedin getting the answer.

Aubrey Inc. issued $4,425,000 of 9%, 10-year convertible bondson June 1, 2014, at 97 plus accrued interest. The bonds were datedApril 1, 2014, with interest payable April 1 and October 1. Bonddiscount is amortized semiannually on a straight-line basis.

On April 1, 2015, $1,659,375 of these bonds were converted into34,300 shares of $15 par value common stock. Accrued interest waspaid in cash at the time of conversion.

(a)

 

Prepare the entry to record the interest expense at October 1,2014. Assume that accrued interest payable was credited when thebonds were issued.

(b)

 

Prepare the entry to record the conversion on April 1, 2015.(Book value method is used.) Assume that the entry to recordamortization of the bond discount and interest payment has beenmade.

 

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