On January 1, 2014, Gottlieb corporation issued $3,250,000 of 10-year, 9% convertible debentures at 104. Interest is to be paid semiannually on June 30 and December 31. Each $1,000 debenture can be converted into 8 shares of Gottlieb corporation $103 par value common stock after December 31, 2015. On January 1, 2016, $325,000 of debentures is converted into common stock, which is then selling at $113. An additional $325,000 of debentures is converted on March 31, 2016. The market price of the common stock is then $117. Accrued interest at March 31 will be paid on the next interest date. Bond premium is amortized on a straight-line basis. Make the necessary journal entries for:

(a) December 31, 2015.

(c) March 31, 2016.

(b) January 1, 2016.

(d) June 30, 2016. Record the conversions using the book value method

Answer rating: 100% (QA)

a December 31 2015 Bond Interest Expense 139750 Premium on Bonds Payable 6500 130000 120 Cash 325000... View the full answer