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Make the journal entry to record the issuance of the bonds

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Problem - Convertible Bond Entries - On January 2, 2019, Lindsay Corporation issued $800,000 of 8% convertible bonds at par. The bonds mature in 10 years and pay interest semiannually on June 30 and December 31. Each $1,000 bond could be converted into 26 shares of the company's $2.50 par value common stock. Alternatively, Lindsay has the right to settle the bonds in cash instead of issuing common stock. Similar bonds without the conversion feature would carry a 10% stated interest rate.

Required - Make the journal entry to record the issuance of the bonds.

Reference no: EM132888879

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