Question: Submit it to your instructor for grading. On January 1, 2021, AA Corporation issued $10 million of 8%, 10-year convertible bonds at 100. The bonds

Submit it to your instructor for grading. On January 1, 2021, AA Corporation issued $10 million of 8%, 10-year convertible bonds at 100. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of $1 par common stock. YYY Company purchased 50% of the issue as an investment. On January 1, 2025, YYY converted all of its bonds into the common stock of AA Corporation. The market price per share for AA Corporation was $60 at the conversion time. Both companies use the straight-line method for amortization. Required: 11:55 1. Prepare journal entries for the issuance of the bonds on the issuer books, AA Corporation. 2. Prepare the journal entries for the conversion on the issuer's books, AA Corporation

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