Question: Problem #5: Bond Conversion Journal Entry Hotwire Corporation has the following bond outstanding 3,500, $1,000 bonds, each convertible into 50 shares of $10 par value

Problem #5: Bond Conversion Journal Entry

Hotwire Corporation has the following bond outstanding

  • 3,500, $1,000 bonds, each convertible into 50 shares of $10 par value common stock.
  • The bonds are converted on December 31, 2019,
  • The unamortized discount is $75,000 and the market price of the stock is $23 per share.

Required: record the Journal entry at conversion of the bonds (use the grid):

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