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Calculate interest expense for the year ended December

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Problem - On 1 January 20X6, Wilson Products Ltd. issued a bond when market interest rates were 8%. - Bonds payable, $12,000,000, 6%, due in 20 years' time. The bonds pay interest semi-annually each 30 June and 31 December. The bonds were issued at 105. The bonds are mandatorily convertible into common shares at the ?xed rate of 40 shares for each $200 bond at maturity. The company may, at its discretion, repay the bond for cash in lieu of shares. Prepare the journal entry at 1 January 20X6, to record issuance of the bond. Also calculate interest expense for the year ended 31 December 20X6.

Reference no: EM132865982

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