Marigold Corp. issued $5820000 of 10%, ten-year convertible bonds on July 1, 2020 at 96.1...
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Marigold Corp. issued $5820000 of 10%, ten-year convertible bonds on July 1, 2020 at 96.1 plus accrued interest. The bonds were dated April 1, 2020 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2021, $1164000 of these bonds were converted into 400 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. If "interest payable" were credited when the bonds were issued, what should be the amount of the debit to "interest expense" on October 1, 2020?
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