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On January 1, 2020, Moss Corporation issued $6 million of 8%,10-year convertible bonds at 110% of par value. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of $1 par common stock. The market value of Moss's common stock 1/1/2020 was $27. Tam Company purchased 20% of the issue as an investment. On July 1, 2024, Tam converted all of its bonds into common stock of Moss. The market price per share for Moss was $18 at the time of the conversion. Both companies use the straightline method for bond discount/premium amortization and maturity date of 10 years. Required: Assuming Moss gives the conversion feature its intrinsic value, 1. Prepare journal entries for the issuance of the bonds by Moss. 2. Prepare the journal entries for the conversion on the books of Moss. On January 1, 2020, Moss Corporation issued $6 million of 8%,10-year convertible bonds at 110% of par value. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of $1 par common stock. The market value of Moss's common stock 1/1/2020 was $27. Tam Company purchased 20% of the issue as an investment. On July 1, 2024, Tam converted all of its bonds into common stock of Moss. The market price per share for Moss was $18 at the time of the conversion. Both companies use the straightline method for bond discount/premium amortization and maturity date of 10 years. Required: Assuming Moss gives the conversion feature its intrinsic value, 1. Prepare journal entries for the issuance of the bonds by Moss. 2. Prepare the journal entries for the conversion on the books of Moss

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