Trimble Corporation has $1,000,000 worth of 7 percent convertible bonds outstanding.On September 1,2013,there is $40,000 of unamortized discount associated with these bonds.The bonds are convertible at the rate of 30 shares of $10 par value common stock for each $1,000 bond.On September 1,2013,an interest payment date,bondholders presented $700,000 of the bonds for conversion.Prepare an entry in journal form without explanation to record the conversion of the bonds.

Question

Quizplus · Accepted Answer

The Answer of Trimble Corporation has $1,000,000 worth of 7 percent convertible bonds outstanding.On September 1,2013,there is $40,000 of unamortized discount associated with these bonds.The bonds are convertible at the rate of 30 shares of $10 par value common stock for each $1,000 bond.On September 1,2013,an interest payment date,bondholders presented $700,000 of the bonds for conversion.Prepare an entry in journal form without explanation to record the conversion of the bonds.

Trimble Corporation Has $1,000,000 Worth of 7 Percent Convertible Bonds