a. Record the issuance of the bonds on December 31, 2018. Credit Convertible Journal Entry Date Accounts Del 2018 Dec 31 Cash Discount on Bonds Payable Convertible Bonds Payable b. Record the e 30, 20 Accounts Payable Cash Date Common Stock Del 2019 Convertible Bonds Payable Jun 30 Discount on Bonds Payable Interest Expense Interest Payable Paid-in Capital in Excess of Par - Common Premium on Bonds PayableCash Re Accounts payable ort the remaining bonds payable on its ba Convertible bonds payable Current liabilities: ation Discount on bonds payable Sheet Premium on bonds payable 020 Less:i Requirements X 1. Use the PV function in Excel to calculate the issue price of the bonds. 2. Prepare an effective-interest method amortization table for the first four semiannual interest periods. 3. Journalize the following transactions: a. Issuance of the bonds on December 31, 2018. Credit Convertible Bonds Payable. b. Payment of interest and amortization of the bond discount on June 30, 2019. c. Payment of interest and amortization of the bond discount on December 31, 2019. d. Conversion by the bondholders on July 1, 2020, of bonds with a total face value of $1,200,000 into 70,000 shares of Caraboo's $1-par common stock. 4. Show how Caraboo would report the remaining bonds payable on its balance sheet at December 31, 2020. Print DoneOn December 31, 201B, Caraboo Corporation issues 10%, 10-year convertible bonds payable with a face value of $3,000,000. The semiannual interest dates are June 30 and December 31. The market interest rate is 12%. Caraboo amortizes bond discounts using the effective-interest method. Read the Requirement 1. Use the PV function in Excel'8 to calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.) The issue price of the bonds is 3 Requirement 2. Prepare an effective-interest method amortization table for the rst four semiannual interest periods. (Round your answers to the nearest whole dollar.) Caribou Corporation Amortization Table Semiannual Interest Discount Discount Account Bond Carrying Interest Date Payment interest Expense Amortization Balance Amount 12-31-2018 5-30-201 9 12-31-2019 6-30-202 0 12-31-2020 Requirement 3. Journalize the following transactions. (Record debits first, then credits. Exclude explanations from all journal entries.) a. Record the issuance of the bonds on December 31, 2018. Credit Convertible Bonds Payable. (Round your answers to the nearest whole dollar. Journal Entry Date Accounts Debit Credit 2018 Dec 31 b. Record the payment of interest and amortization of the bonds on June 30, 2019. (Round your answers to the nearest whole dollar.) Journal Entry Date Accounts Debit Credit 2019 Jun 30 c. Record the payment of interest and amortization of the bonds on December 31, 2019. (Round your answers to the nearest whole dollar.) Journal Entry Date Accounts Debit Credit 2019 Dec 31Journal Entry Date Accounts Debit Credit 2019 Dec 31 d. Record the conversion by the bondholders on July 1, 2020, of bonds with a total face value of $1,200,000 into 70,000 shares of Caraboo's $1-par common stock. (Round your answers to the nearest whole dollar.) Journal Entry Date Accounts Debit Credit 2020 Jul Requirement 4. Show how Caraboo would report the remaining bonds payable on its balance sheet at December 31, 2020. (Calculate the discount by multiplying the discount calculated in the original amortization table by the fraction of bonds remaining. Round your answers to the nearest whole dollar.) Caraboo Corporation Partial Balance Sheet December 31, 2020 Less
