4 ISSUANCE, INTEREST AMORTIZATION, RETIREMENT AND CONVERSION OF BONDS on January 1, 2017, Maytair Co. issued ten-year convertible bonds with a face value of $300,000 and a stated interest rate of 12%, payable semiannually on June 30 and December 31. The bonds were sold to yield 10. Table values are Present value of 1 for 10 periods at 10 Present value of 1 for 10 periods at 12% Present value of 1 for 20 periods at 5 Present value of 1 for 20 periods at 6% Present value of annuity for 10 periods at 108 Present value of annuity for 10 periods at 128 Present value of annuity for 20 periods at 5 Present value of annuity for 20 periods at 6% 0.38554 0.32197 0.37689 0.31180 6.14457 5. 65022 12.46221 11.46992 Instructions a) calculate the issue price of the bonds in dollars. (3 points) b) Calculate the issue price as a percentage (2 points) c) Prepare the journal entry to record the issue of the bonds. (2 pointa) d) Prepare the amortization table for 2017 and 2018, assuning that anortization is recorded using the effective-interest method. (10 points) e) Prepare the necessary journal entries to record interest expense for 2018. 4 points) ) on January 1, 2019 Mayfair Co. retired $100,000 of bonds at 108. ti s Calculate the gain or loss on retirement (2 pointa) ii Make the necessary journal entry to record the bonds retirement. (2 points) (g) ) On January 1, 2019, Mayfair converted 40% of bonds to common stock. Each bond is converted to 100 shares of the $8 par value common stock. Make the journal entry to record the conversion. i Calculate the number of physical bonds being converted (2 points) i Calculate the number of shares to be received (2 points) ii Make the necessary journal entry to record the bonds conversion. (2 points)