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What is the debit to Interest Expense on Oct

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Question - On July 2, 2020, Martineau Ltd. issued $6,000,000 (par value), 9%, ten-year convertible bonds at 98. The bonds were dated April 1, 2020 with interest payable quarterly on July 1, October 1, January 1 and April 1. If the bonds had NOT been convertible, they would have sold for 96.1. The bond discount is amortized on a straight-line basis. On April 1, 2021, $1,200,000 of these bonds were converted into 500 no par common shares. Accrued interest was paid in cash at the time of conversion.

Required - What is the debit to Interest Expense on Oct 1, 2020?

a. $129,000

b. $141,000

c. $135,000

d. $143,923

Reference no: EM132649185

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