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Business, 09.04.2021 03:00 justin5647

Laufer Corp. received $1,000,000 in cash proceeds from the issue of $1,000,000 of 4% 20-year convertible bonds on January 1, 2020. Interest is payable annually on December 31, and any discount/premium is amortized using effective interest amortization. The convertible debt contains an agreement with the lenders that the issuer may settle the entire obligation with any combination of stock or cash equivalent to the conversion value. The market rate of interest for similar credit-quality non-convertible debt is 8%. Required:
Journalize the entires.

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Laufer Corp. received $1,000,000 in cash proceeds from the issue of $1,000,000 of 4% 20-year convert...
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