B4: Convertible Debt (Investors' Option) JQT Inc. ('JQT') issued 1,200 five-year, 5% convertible bonds to existing shareholders with a maturity value ('face amount') of $1,000 per bond. The securities were issued for gross proceeds of $1,200,000 on January 1, 20X2. No finance fees were charged. Interest is paid annually on December 31 each year and the convertible bonds mature on December 31, 2026, at which time shareholders may receive either the face amount of the bond or 50 common shares. JQT's financial advisor has valued the conversion option at $98,400, using the Black Scholes Option Pricing Model. Question 16 (2 points) Determine the effective rate of interest on JQT's convertible bonds. [express as a percentage including one decimal place (e.g. 14.68195% would be entered as 14.7) and USE THIS RATE and precision for subsequent questions in this Section] Question 17 (3 points) Date Accounts Dr Cr 2022-Jan-01 Cash A Discount on Convertible Bonds Payable B D F E Record issuance of 5% convertible bonds Complete the journal entry to record the issuance of the Convertible Bonds by providing the missing account captions or amounts in the General Journal Entry above by filling in the blanks (below) corresponding to the letter in each cell of the J/E. [enter monetary amounts rounded to the nearest dollar without punctuation or currency symbol (e.g. $47,124.78 should be entered as 47125)] Question 18 (2 points) Construct an Amortization Schedule for the life of the convertible bond using the rounded effective rate of interest from the first question in this Section. From that Amortization Schedule, provide the following amounts in respect of the 3rd year ending 2024-Dec-31: [enter monetary amounts rounded to the nearest dollar without punctuation or currency symbol (e.g. $47,124.78 should be entered as 47125)]. Interest Expense: A/ Carrying value of the debt component of the bond at the year-end: Hide hint for Question 18 Recommendation: Use Excel to construct the Amortization Schedule; remember to use an interest rate rounded to 1 decimal place (e.g. 8.5%) and round all monetary amounts in the Amortization Schedule to the nearest whole dollar as they are calculated