Conversion of Bonds

On January 1, 2009, Trillini Corporation issued $3,000,000 of 10-year, 8% convertible debentures at 102. Interest is to be paid semiannually on June 30 and December 31. Each $1,000 debenture can be converted into eight shares of Trillini Corporation $100 par value common stock after December 31, 2010.
On January 1, 2011, $600,000 of debentures are converted into common stock, which is then selling at $110. An additional $600,000 of debentures are converted on March 31, 2011. The market price of the common stock is then $115. Accrued interest at March 31 will be paid on the next interest date.

Make the necessary journal entries for the following dates: Dec 31, 2010 Jan 1, 2011 March 31st 2011 and June 30th 2011


Instead of typing all the questions, why not go through your book and work the examples in it for your homework?

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Michelle Long CPA , International QB Trainer

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