Convertible bonds
Atlanta Ltd. sold convertible bonds at a premium. Interest is paid on May 31 and November 30. On May 31, after the required interest was paid, all the bonds were converted into 3,000 no par value common shares, which were currently trading at $ 50 per share.
Instructions
How should Atlanta account for the conversion of the bonds under the book value method? Discuss the rationale for this method.

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The Answer of Convertible bonds
Atlanta Ltd. sold convertible bonds at a premium. Interest is paid on May 31 and November 30. On May 31, after the required interest was paid, all the bonds were converted into 3,000 no par value common shares, which were currently trading at $ 50 per share.
Instructions
How should Atlanta account for the conversion of the bonds under the book value method? Discuss the rationale for this method.

Convertible Bonds Atlanta Ltd. Sold Convertible Bonds at a Premium. Interest Is