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4) Convertible bonds ( 8 points). Mason Corporation issues 100,000 in bonds of 10 -year, 6%
convertible bonds. So there were 100 bonds with a face value $1,000 each. Each $1000 bond is
convertible into 50 common shares with $2 par value. Mason received $120,000 for the bonds
when issued. Two year later, the bonds were converted to common stock when the carrying
value was $110,000 and the market price per share was $100. Show work for part b. a. What is
the joumal entry for the issuance of the bonds? b. What is the joumal entry for the conversion?

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4) Convertible bonds ( 8 points). Mason Corporation issues 100,000 in.pdf

  • 1. 4) Convertible bonds ( 8 points). Mason Corporation issues 100,000 in bonds of 10 -year, 6% convertible bonds. So there were 100 bonds with a face value $1,000 each. Each $1000 bond is convertible into 50 common shares with $2 par value. Mason received $120,000 for the bonds when issued. Two year later, the bonds were converted to common stock when the carrying value was $110,000 and the market price per share was $100. Show work for part b. a. What is the joumal entry for the issuance of the bonds? b. What is the joumal entry for the conversion?