On January Larkspur Corporation issued $ of year, convertible debentures at Interest is to be paid
semiannually on June and December Each $ debenture can be converted into shares of Larkspur Corporation $ par
value common stock after December
On January $ of debentures are converted into common stock, which is then selling at $ An additional
$ of debentures are converted on March The market price of the common stock is then $ Accrued interest at
March will be paid on the next interest date.
Bond premium is amortized on a straightline basis.
Make the necessary joumal entries for:
a December
c March
b January
d June
