2. a company with compensated absences (vacation pay) where pay rates vary by employee. Address the requirements outlined in the file.

3. company has the following debt issues and uses the effective interest method to amortize discounts/premiums. Information for each is below:

• There was a bond issue with a par value of $300,000 (Bond #1) on July 1, 2019 when the market rate of interest was 8%. The bonds have a coupon rate of 7.5% and interest is paid semiannually on January 1 and July 1. The bonds have an eight-year life when issued. This bond issue is convertible into common stock at the rate of 15 shares for every $1,000 of face value (note - common stock has a par value of $2 per share). On January 2, 2023, $60,000 of face value was converted into common stock. The company uses the book value method to record conversions. The market price of the stock was $100 per share when the bonds were converted.

• On February 1, 2016, the company had a bond issue with principal of $500,000 (Bond #2). The bond issue has a ten-year life. Interest is payable semi-annually on February 1 and August 1. The coupon rate is 7%. The market rate of interest at issue was 6%. On August 2, 2022, the company called the entire bond issue at 110.

• On November 1, 2018, the company issued serial bonds at par. The face value of the issue was $400,000, and the coupon interest rate is 6%. Interest is paid semi-annually on May 1^st November 1st. The principal will be paid with eight annual equal payments of $50,000 on November 1 from 2019 through 2026.

• On April 1, 2019, the company purchased a building for $200,000 financed by a mortgage. The mortgage has a 6% annual rate of interest, a ten-year life, and requires equal quarterly payments on March 30^th, June 30^th, September 30^th, and December 31^st.

• On March 1, 2019, the company issued a zero-coupon bond with a face value of $250,000 that matures on March 1, 2021. The market rate of interest for this bond is 8%.

Required:

1. For Bond #1:

1. Compute the bond price.

2. Prepare an amortization table for the life of the bond.

3. Prepare all required journal entries for 2019 and 2020.

4. Record the bond conversion on January 2, 2023.

5. Prepare a new amortization table effective after the bond conversion.

6. Prepare a journal entry for the interest payment on July 1, 2023

2. For Bond #2:

1. Compute the bond price

2. Prepare an amortization table for the life of the bond.

3. Prepare the entry required on 12/31/18 for the accrual of interest

4. Prepare all required journal entries for 2019 and 2020.

5. Record the bond call on November 2, 2022.

3. For the serial bond, prepare all required journal entries for 2018, 2019, and 2020.

4. For the mortgage:

1. Compute the required quarterly payment.

2. Prepare an amortization table for the life of the mortgage.

3. Prepare all required journal entries for 2019 and 2020.

5. For the zero-coupon bond:

1. Compute the bond price.

2. Prepare all required journal entries for 2019 and 2020.

6. The company is preparing its balance sheet at December 31, 2020. For EACH of the five debt issues in this assignment, determine the amount of the liability that would be included in current liabilities, and the amount that would be included in noncurrent liabilities.