Question: Bear Corporation has 3 000 000 of 8 percent 1 000 bonds outstanding
Bear Corporation has $3,000,000 of 8 percent, $1,000 bonds outstanding. There is $60,000 of unamortized discount remaining on the bonds after the June 1, 2011, semiannual interest payment. The bonds are convertible at the rate of 30 shares of $10 par value common stock for each $1,000 bond. On June 1, 2011, bondholders presented $1,800,000 of the bonds for conversion. Prepare the journal entry to record the conversion of the bonds.
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