On January 1, 2011, Trillini Corporation issued $4,110,000 of 10-year, 8% conver

Question

On January 1, 2011, Trillini Corporation issued $4,110,000 of 10-year, 8% convertible debentures at 102. Interest is to be paid semiannually on June 30 and December 31. Each $1,370 debenture can be converted into eight shares of Trillini Corporation $137 par value common stock after December 31, 2012.
On January 1, 2013, $822,000 of debentures are converted into common stock, which is then selling at $151. An additional $822,000 of debentures are converted on March 31, 2013. The market price of the common stock is then $158. Accrued interest at March 31 will be paid on the next interest date.
Bond premium is amortized on a straight-line basis.

prepare the jounral entries for
a. Dec 31, 2010
b. jan. 1, 2011
c. march 31, 2011
d. june 30, 2011

Explanation / Answer

Dec 31 2010 - No entry as no transaction took place Jan 1 2011 Cash A/c....................Dr 4192200 To Bonds Payable 4110000 To premium on issued bonds 82200 March 31, 2011 Interest accrued A/c........Dr 82200 To Interest payable 82200 June 30, 2011 Interest accrued A/c........Dr 82200 To Interest payable 82200

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