Tatum Corporation has $2,000,000 worth of 7 percent convertible bonds outstanding. On September 1, 2010,there is $80,000 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, 2010,an interest payment date, bondholders presented $1,400,000 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 Tatum Corporation has $2,000,000 worth of 7 percent convertible bonds outstanding. On September 1, 2010,there is $80,000 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, 2010,an interest payment date, bondholders presented $1,400,000 of the bonds for conversion. Prepare an entry in journal form without explanation to record the conversion of the bonds.

Tatum Corporation Has $2,000,000 Worth of 7 Percent Convertible Bonds