Volker Inc. issued $2,500,000 of convertible 10-year bonds

Volker Inc. issued $2,500,000 of convertible 10-year bonds on July 1, 2012. The bonds provide for 12% interest payable semiannually on Jan 1 and July 1. The discount in connection with the issue was $54,000, which is being amortized monthly on a straight-line basis.

The bonds are convertible after one year into 8 shares of Volker Inc.’s $100 par value common stock for each $1000 of bonds.

On August 1, 2013, $250,000 of bonds were turned in for conversion into common stock. Interest has been accrued and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash.

Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (round to the nearest dollar)
A. August 1, 2013 (assume book value method is used
B. August 31, 2013
C. December 31, 2013, including closing entries for end-of-year

The attachment the prof gave us also has tables ot fill in.
1. Unamortized discount on bonds payable and it starts with Amount to be amortized over 120 months
2. Amortization of bond discount charged to bond interest expense in 2013 would be as follows
3. Interest on Bonds:
4.Interest for 2013 would be as follows:
5.Total interest

How Our Website Works


It has never been easier to place your order. Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process.


All your payments are processed securely through PayPal. This enables us to guarantee a 100% security of your funds and process payments swiftly.


Next, we match up your order details with the most qualified freelance writer in your field.


Once we have found the most suitable writer for your assignment, they start working on a masterpiece just for you!


Once finished, your final paper will be available for download through your personal dashboard. You will also receive an email notification with a copy of your paper attached to it. Sometimes, the writer may leave a note for you about the order in case there is any additional information that they need to give you.

Leave a Reply

Your email address will not be published.