Journal entries for the conversion of bonds

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Haas Corp has $80,000, 8% 12-year convertible bonds outstanding. These bonds are sold at face value and pay semiannual interest on 6/30 and 12/31 of each year. The bonds are convertible into 30 shars of Haas $5 par value common stock for each $1,000 worth of bonds. On 12/31/08, after the bond interest has been paid, $20,000 face value bonds were converted. The market value of Haas common stock was $44 per share on 12/31/08. Prepare journal entries for the conversion of these bonds.

Reference no: EM13151154

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