Garr Co. issued $6,000,000 of 12%, 5-year convertible bonds on December 1, 2017 for $6,025,480 plus accrued interest. The bonds were dated April 1, 2017 with interest payable April 1 and October 1. Bond premium is amortized each interest period on a straight-line basis. Garr Co. has a fiscal year end of September 30. On October 1, 2018, $3,000,000 of these bonds were converted into 42,000 shares of $15 par common stock. Prepare the entry to record the conversion on October 1, 2018. Assume that the entry to record amortization of the bond premium and interest payment has been made.

Answer rating: 100% (QA)

Fiscal year end in sep30 Journal Entries Account title and explanation Debit Cred... View the full answer