Martinez Inc. issued $ of year convertible bonds on November at plus accrued interest. The bonds were dated July with interest payable January and July Bond discount premium is amortized semiannually on a straightline basis.
On July onehalf of these bonds were converted into shares of $ par value common stock. Accrued interest was paid in cash at the time of conversion.
a Prepare the entry to record the interest expense at December Assume that accrued interest payable was credited when the bonds were issued. Credit Interest Payable for the full amount due; debit Interest Payable for the amount recognized at insurance. Round to nearest dollar.
b Prepare the entry to record the conversion on July Book value method is used. Assume that the entry to record amortization of the bond discount and interest payment has been made.
Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts. Round answers to decimal place, eg List all debit entries before credit entries.
