Worldview Imaging Ltd. issued $3,600,000 of 9% notes payable on December 31, 2010, at a price of 94.The notes term maturity is 10 years. After four years, the notes may be converted into Worldview common stock. Each $1,000 face amount of notes is convertible into 60 shares of$1 par common stock. On December 31, 2015, note-holders exercised their right to convert all the notes into common stock.Requirements1. Without making journal entries, compute the carrying amount of the notes payable at December 31, 2015, immediately before conversion. Worldview uses the straight-line method to amortize bonds.2. All amortization has been recorded properly. Journalize the conversion transaction at December 31, 2015.View Solution:
Worldview Imaging Ltd issued 3 600 000 of 9 notes payable on

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