On January Gless Textiles issued $ million of year convertible bonds at
The bonds pay interest on June and December
Each $ bond is convertible into shares of Gless's no par common stock.
Bonds that are similar in all respects, except that they are nonconvertible, currently are selling at that is of face amount
Century Services purchased of the issue as an investment.
Required:
Prepare the journal entries for the issuance of the bonds by Gless and the purchase of the bond investment by Century.
Prepare the journal entries for the June interest payment by both Gless and Century assuming both use the straightline method.
On July when Gless's common stock had a market price of $ per share, Century converted the bonds it held. Prepare the journal entries by both Gless and Century for the conversion of the bonds book value method
