Sonoda Computers Inc. has the following transactions concerning long-term liabilities during the current year.
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Apr. 2 |
Convertible bonds issued by Sonoda at face value are converted into common stock. The $100,000 bond issue has a conversion price of $25 per share of common stock with one $1,000 bond convertible into 40 shares of stock. The common stock has a par value of $10 and a fair market price of $30 at the time of conversion. |
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June 30 |
The first installment payment on a $100,000, 10%, 10-year mortgage note is made by Sonoda. The terms of the mortgage contract provided for semiannual installment payments, exclusive of real estate taxes and insurance of $8,024. |
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Dec. 31 |
The second installment payment is made on the mortgage note. |
Instructions
Journalize the transactions. (Omit explanations.)