I need the solution to P9-71A from the book Financial Accounting 10th Editon. Re

Question

I need the solution to P9-71A from the book Financial Accounting 10th Editon.

Requirements 1. Use the PV function in Excel to cakeulate the issue price of the bonds. 2. Using Exhibit 9 4 of the bond discount as a model, prepare an effective-interest method amortization table for the term of the bonds. 3. Joumalize the following transactions a. Issuance of the bonds on December 31, 2014. Credit Convertible Bonds Payable. b. Payment of interest and amortization of the bond discount on June 30, 2015. c. Payment of interest and amortization of the bond discount on December 31, 2015. d. Conversion by the bondholders on July 1,2016, of bonds with face value of $1,600,000 into 120,000 shares of Hemdon Corp's 1 par common stock. 4. Show how Herndon Corp. would report the remaining honds payable on its balance sheet at December 31, 2016.

Explanation / Answer

a) Issue price = $ 96,149

b) already done

c) Journal

a) cash Dr 96,149

discount on issue of Bonds Dr 3,851

Convertible Bonds Payable Cr 100,000

b) Interest expense Dr 4,807

discount on Bonds Payable Cr 307

Cash Cr 4,500

c) Interest expense Dr 4,807

discount on Bonds Payable Cr 307

Cash Cr 4,500

d) For D) entry you have to confirm th figure bond face value 1,600,000 but if it is so

Convertibe Bond payable Dr 1,600,000

Common Stock Cr 120,000

excess paid in capital cr 1,480,000

4. part 4 have to confirm the figures the remaing bond value after conversion is not provided in the question

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