題組內容

三、On January 1, 2011, Burberry Company issued a convertible bond with a par value of $50,000 in the market for $60,000. The bonds are convertible into 6,000 ordinary shares of $1 per share par value. The bond has a 5-year life and has a stated rate of 10% payable annually. The market interest rate for a similar non-convertible bond is 8%. 
 Instructions (Round amounts to the nearest dollar)

(a) Prepare the journal entry to record the issuance of the convertible bond on January 1， 2011.(5%)