2 Nero Solutions Co issued an $1,000,000, 8%, three-year bond for $1,006,000. The bond pays Interest annually, at each year-end. At maturity, the bond can be repaid in cash or converted to 80,000 common shares at the investor's option. The market Interest rate for bonds of similar term and risk, but that are not convertible, is in the range of 9% 425 Required: 1. Calculate the portion of the bond to be recorded as a liability. (Do not round Intermediate calculations. Round your final answer to the nearest whole dollar amount.) 4 2. Provide the entry to record Issuance of the bond. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) View traction Ret Journal ent worksheet Record the entry for issuance of bonds Note: Enter debits before credits Transaction 1 Racord entry General Journa View transaction that Clear any Voor general fours 3. Provide the entries to record interest expense and the annual cash payment each year over the bond's three-year life (If no entry is required for a transaction/event, select "No Journal entry required first account field. Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amount.) Journal entry worksheet Credi

Nero Solutions Co issued an $1,000,000,8% three year bond for $1,006,000. The bond pays interest annually, at each year-end. At moturity, the bond can be tepaid in cash or converted to 80,000 common shares at the investor's option. The market interest rate for bonds of samilar term and rsk, but that are not corvertible, is in the range of 9 a Requlred: 1 Calculate the portion of the bond to be recorded as a liabilty. (Do not round intermediate calculotions. Round your finel answer to the nearest whole dollar amount) 2. Pronde the entry to record issuance of the bond, if no entry is required for a transaction/event, seiect "No journal entry required" in the frst occoumt field. Do not round intermediate calculatlons. Round your final answers to the nearest whole dollar smount.) Journal entry worksheet 3. Provide the entres to record interest expense and the annuai cash payment each year over the bonass threeyeor iffe of no entry is required for a transectionievent, seiect "No journel entry required" In the first occount feld. Do not round Intermediete colculotions. Round your final answers to the nesest whole doller amount) Journal entry worksheet Nero Solutions Co. issued an $1,000,000,8%, three-year bond for $1,006,000. The bond pays interest annually, at each year-end. At maturity, the bond can be repaid in cash or converted to 80,000 common. shares at the investor's option. The market interest rate for bonds of similar term and risk, but that are not convertible, is in the range of 9%. Required: 1. Calculate the portion of the bond to be recorded as a liability. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) 2. Provide the entry to record issuance of the bond. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) 3. Provide the entries to record interest expense and the annual cash payment each year over the bond's three-year life. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Journal entry worksheet 3 Record the entry for interest expense and annual cash payment. Noter Inter sebats before credits. 4. Provide the entry to record the maturity of the bond, assuming that shares were issued. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Journal entry worksheet Record the entry for issive of shares towards matuity of bonds. Nolel Enter debits befoce aridis. 5. Provide the entry to record the maturity of the bond, assuming that cash is paid. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Journal entry worksheet Rocord the entry for repayment on bonds payable. Note: coter debas before credis: 6. Provide the entry to record early repayment of the bond, assuming that it was repaid in cash in an open market transaction after two complete years. Cash of $1,010,000 was paid, of which $1,000,000 related to the liability and $10,000 related to the conversion option. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Journal entry worksheet