Use the straight-line method for amortization

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Reference no: EM131813041

On January 1, 2015, Slug Corporation issued $5.0 million of 6%, 10-year convertible bonds at 103. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 30 shares of $1 par common stock. Fuzz Company purchased 30% of the issue as an investment. On July 1, 2019, Fuzz converted all of its bonds into common stock of Slug. The market price per share for Slug was $22 at the time of the conversion. Both companies use the straight-line method for amortization. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

1. Prepare journal entries for the issuance of the bonds on the issuer and....

the investor books.

2. Prepare the journal entries for the conversion on the books of the issuer and...

the investor

Reference no: EM131813041

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