On January 1, 2014, ABC Incorporated Issued $10,000,000 Face Amount

question 28

Essay

On January 1, 2014, ABC Incorporated issued $10,000,000 face amount of 8%, 10 year, subordinate convertible debentures at face value in a private placement.The debentures pay interest annually, in cash, on 31 December.The bonds were issued for $12 million, and that the market rate was 6%:
Prepare Journal entries to record the issuance of the bonds on January 1, 2014.

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Definitions:

Attraction

A force that draws individuals together, often used in the context of interpersonal or sexual appeal.

Defence Mechanism

Psychological strategies employed unconsciously to protect oneself from anxiety or confronting unacceptable thoughts or feelings.

Projection

A defense mechanism where an individual ascribes their own unwanted thoughts, feelings, or impulses onto someone else.

Latent Homosexual

A term historically used to describe a person who has homosexual desires or tendencies that are not openly expressed or consciously acknowledged.