What are the journal entries for the following transaction?
A company entered into a two-year loan of $20,000,000, with a20% interest rate payable semi-annually April 1 and October 1 withno principal due until maturity. The debt is convertible intoshares of common stock at $1.50 per share. The company incurred$1,5000,000 in financing costs, paid to the issuer.
