Hoffman Corporation issued $60.4 million of 5%, 20year bonds at 103.6. Each of the 60,000 bonds was convertible into one share

Hoffman Corporation issued $60.4 million of 5%, 20year bonds at 103.6. Each of the 60,000 bonds was convertible into one share of $1 par common stock. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in millions to one

decimal place. Omit the "$" sign in your response.)

General Journal Debit Credit

Cash 62.6

Premium on bonds payable 2.2

Bonds payable 60.4

Explanation:

GAAP requires that the entire issue price of convertible bonds be recorded as debt, precisely the same

way, in fact, as for nonconvertible bonds.

Cash (103.6% × $60.4 million) = 62.6