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Business, 12.10.2021 04:10 tjk0709

On January 1, 2020, Bonita Corporation issued $3,640,000 of 10-year, 7% convertible debentures at 104. Interest is to be paid semiannually on June 30 and December 31. Each $ 1,000 debenture can be converted into 8 shares of Bonita Corporation $ 100 par value common stock after December 31, 2021.On January 1, 2022, $ 364,000 of debentures are converted into common stock, which is then selling at $ 110. An additional $ 364,000 of debentures are converted on March 31, 2022. The market price of the common stock is then $ 114. Accrued interest at March 31 will be paid on the next interest date. Bond premium is amortized on a straight-line basis. Make the necessary journal entries for:

a. December 31, 2021.
b. March 31, 2022.
c. January 1, 2022.
d. June 30, 2022.

Required:
Record the conversions using the book value method.

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On January 1, 2020, Bonita Corporation issued $3,640,000 of 10-year, 7% convertible debentures at 10...
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