The journal for recording conversion of bond. Given information: Company issued bonds worth $227,200. Number of shares issued is 200 shares. Term period for conversion is 8 years Market rate of interest is 6%. Market price of common stock is $120 per share. Balance of unamortized premium is $14,660.

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Chapter 14, Problem 14.23BE

To determine

To prepare: The journal for recording conversion of bond.

Given information:

Company issued bonds worth $227,200.

Number of shares issued is 200 shares.

Term period for conversion is 8 years

Market rate of interest is 6%.

Market price of common stock is $120 per share.

Balance of unamortized premium is $14,660.

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