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On January 1, 2017, Sheridan Corporation issued $3,800,000 of 10-year, 8% convertible debentures at 104. Interest...

On January 1, 2017, Sheridan Corporation issued $3,800,000 of 10-year, 8% 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 Sheridan Corporation $100 par value common stock after December 31, 2018.

On January 1, 2019, $380,000 of debentures are converted into common stock, which is then selling at $110. An additional $380,000 of debentures are converted on March 31, 2019. The market price of the common stock is then $115. 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, 2018. (c) March 31, 2019.
(b) January 1, 2019. (d) June 30, 2019.
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Answer #1

DebitCsedi al-e 152, 00 Dalre un20 Bonds payable DY 380,000 2,160 304, 00D g8)60 152,000 121,600 nds Conveted (380,000/3800,038D,ooo x3/12 3dD,o0oxs 30 ,000 ro,000 ot bond」 12,t60 380 ond ntes able 121,2D0 152,000 2018 anywhF2よhon 21 6D 1a1,5 20

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