Manchester Incorporated has $4,000,000 of convertible bonds payable outstanding, with a bond premium...
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Manchester Incorporated has $4,000,000 of convertible bonds payable outstanding, with a bond premium of $40,000 also on the books. The bondholders have notified Manchester that they wish to convert the bonds into shares on April 15. Specifically, the bonds may be converted into 500,000 shares of Manchester's common shares. a. What is Manchester's carrying amount of its convertible bonds payable prior to the conversion? b. Journalize Manchester's conversion of the bonds payable into common shares. a. What is Manchester's carrying amount of its convertible bonds payable prior to the conversion? The carrying amount of its convertible bonds payable prior to the conversion is
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