Question: Symantec has convertible bonds outstanding with a face value of
Symantec has convertible bonds outstanding with a face value of $10,000,000 and a carrying value of $10,255,000. Holders of the bonds convert them into 100,000 shares of $10 par value common stock. The common stock sells for $105 per share on the market. Give the journal entries to record the conversion of the bonds using (1) the carrying value method and (2) the fair value method.
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