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Homework answers / question archive / On January 1, 2017, Bridgeport Corporation issued $4,100,000 of 10-year, 8% convertible debentures at 104

On January 1, 2017, Bridgeport Corporation issued $4,100,000 of 10-year, 8% convertible debentures at 104

Finance

On January 1, 2017, Bridgeport Corporation issued $4,100,000 of 10-year, 8% 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 Bridgeport Corporation $102 par value common stock after December 31, 2018.

On January 1, 2019, $410,000 of debentures are converted into common stock, which is then selling at $111. An additional $410,000 of debentures are converted on March 31, 2019. The market price of the common stock is then $116. 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, 2018

(b) January 1, 2019.

(c) March 31, 2019

(d)June 30, 2019.

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