A B C E16-1 Issuance and Conversion of Bonds For each of the unrelated transactions described below, present the entry (ies) required to record each transaction. Select from the following account names Bonds Payable Cash Common Stock Debt Conversion Expense Discount on Bonds Payable Discount on Stock Warrants Paid-in Capital Stock Warrants Paid-in Capital in Excess of Par Premium on Bonds Payable Warrant Conversion Expense Warrants Receivable 1. Grand Corp. issued convertible bonds $ 20,000,000 Total par value of bonds issued issue price at (% of par value) Stated rate of interest Estimate by investment banker of the price at which the bonds could have been sold if they had not been convertible: (% of par value) 10% 95 Debit Credit 2. Hoosier Company issued bonds. One detachable stock warrant was issued with each bond Total Par value of bonds Issue price at (% of par value) Stated rate of interest Par value of each bond Selling price of each warrant at time of issuance $ $ 20,000,000 98 10% 100 4 Calculation of value of bonds: Value of bonds warrants Value of warrants Value of bonds Debit Credit 3. Suppose Sepracor, Inc. called its convertible debt in 2017. The company records the conversion using the book value method. Assume the following related to the transaction Total par value of bonds on July 1, 2017 Conversion of the above bonds on July 1, 2017 into $ 10,000,000 Shares of $1 par value common stock 1,000,000 $55,000 $ 75,000 Balance of unamortized discount on July 1 applicble to the bonds Additional payment to induce conversion of bonds Make one entry to record the entire transaction. Debit Credit