Saint Martin Inc.issued $300,000,12%,10-year bonds on July 1,2017.Interest payments dates are January 2 and July 1.The issue price was $293,400.The bonds are convertible into common shares at the rate of 15 common shares for each $1,000 bond.The market price of Saint Martin Inc.common shares has risen steadily over the last two years and on July 1,2019,half of the bonds are converted into common shares.
a_Compute the balance in the premium or discount account on date of conversion.Saint Martin Inc.uses the straight-line method of amortization.
b_Prepare the entry to convert half of the bonds into common shares.

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The Answer of Saint Martin Inc.issued $300,000,12%,10-year bonds on July 1,2017.Interest payments dates are January 2 and July 1.The issue price was $293,400.The bonds are convertible into common shares at the rate of 15 common shares for each $1,000 bond.The market price of Saint Martin Inc.common shares has risen steadily over the last two years and on July 1,2019,half of the bonds are converted into common shares.
a_Compute the balance in the premium or discount account on date of conversion.Saint Martin Inc.uses the straight-line method of amortization.
b_Prepare the entry to convert half of the bonds into common shares.