P14-8. Accounting for compound financial instruments LO. 14-2) (Easy - 5 minutes) A company issues convertible...

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Answer 1

Answer #1

Account titles and explanation	Debit	Credit
Cash	$6,540,000
Bonds payable (Financial Liability)		$6,200,000
Share premium-equity conversion (Equity)		$340,000
(equity and liability portion of bond recorded)

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Answer 2

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