On January 1, 2014, ABC Incorporated issued $10,000,000 face amount of 8%, 10 year, subordinate convertible debentures at face value in a private placement.The debentures pay interest annually, in cash, on 31 December.The bonds were issued for $12 million, and that the market rate was 6%:
Assume that on January 1st, 2015, the shares were converted when the market price of the share was
$102.Prepare the required journal entry.

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The Answer of On January 1, 2014, ABC Incorporated issued $10,000,000 face amount of 8%, 10 year, subordinate convertible debentures at face value in a private placement.The debentures pay interest annually, in cash, on 31 December.The bonds were issued for $12 million, and that the market rate was 6%:
Assume that on January 1st, 2015, the shares were converted when the market price of the share was
$102.Prepare the required journal entry.

On January 1, 2014, ABC Incorporated Issued $10,000,000 Face Amount