On December 31,2012,the balance sheet of Gamma Corporation reported bonds outstanding with a face value of $2,000,000 and a related unamortized premium of $60,000.Interest is payable semiannually on January 1 and July 1.
a.Prepare an entry in journal form without explanations to record the retirement of bonds with a face value of $1,200,000 on January 1,2013,assuming the bonds were redeemed at a call price of 104.
b.Prepare an entry in journal form without explanation on January 1,2013,to record the conversion of bonds with a face value of $800,000 into common stock.Each $1,000 bond is convertible into 30 shares of $20 par value common stock.

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The Answer of On December 31,2012,the balance sheet of Gamma Corporation reported bonds outstanding with a face value of $2,000,000 and a related unamortized premium of $60,000.Interest is payable semiannually on January 1 and July 1.
a.Prepare an entry in journal form without explanations to record the retirement of bonds with a face value of $1,200,000 on January 1,2013,assuming the bonds were redeemed at a call price of 104.
b.Prepare an entry in journal form without explanation on January 1,2013,to record the conversion of bonds with a face value of $800,000 into common stock.Each $1,000 bond is convertible into 30 shares of $20 par value common stock.

On December 31,2012,the Balance Sheet of Gamma Corporation Reported Bonds