Use the Following Information for Questions 47-49

question 64

Multiple Choice

Use the following information for questions 47-49.
On July 2, 2020, Martineau Ltd. issued $ 6,000,000 (par value) , 9%, ten-year convertible bonds at 98. The bonds were dated April 1, 2020 with interest payable quarterly on July 1, October 1, January 1 and April 1. If the bonds had NOT been convertible, they would have sold for 96.1. The bond discount is amortized on a straight-line basis. On April 1, 2021, $ 1,200,000 of these bonds were converted into 500 no par common shares. Accrued interest was paid in cash at the time of conversion.
-What is the debit to Interest Expense on Oct 1, 2020?

• A) $ 129,000
• B) $ 135,000
• C) $ 141,000
• D) $ 143,923

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Definitions:

Declining Performance

A decrease or deterioration in the effectiveness, efficiency, or quality of an individual's or organization's output.

Existing Strategy

The current plan or course of action implemented by an organization to achieve its objectives.

Incremental Changes

Small, gradual modifications or adjustments made over time to improve a process, system, or product.

Executive Team

A group of high-level managers or directors who work together to set strategy, make major decisions, and lead an organization.