Garr Co. issued $4220000 of 12% 5-year convertible bonds on December 1 2014 for $4237830 plus accrued interest. The bonds were dated April 1 2014 with interest payable April 1 and October 1. Bond premium is amortized each interest period on a straight-line basis. Garr Co. has a fiscal year end of September 30.On October 1 2015 $2110000 of these bonds were converted into 29000 shares of $15 par common stock. Accrued interest was paid in cash at the time of conversion.Prepare the entry to record the interest expense at April 1 2015. Assume that interest payable was credited when the bonds were issued.Prepare the entry to record the conversion on October 1 2015. Assume that the entry to record amortization of the bond premium and interest payment has been made.
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