BE16-1 Archer Company issued f4,000,000 par value, 7% convertible bonds at 99 for cash. The net present value of the debt without the conversion feature is 3,800,000. Prepare the journal entry to record the issuance of the convertible bonds. BE16-2 Petrenko Corporation has outstanding 2,000 1,000 bonds, each convertible into 50 shares of 10 par value ordinary shares. The bonds are converted on December 31, 2015. The bonds payable have a carrying value of 1,950,000, and there is conversion equity of 20,000. Record the conversion using the book value method. E16-1 (Issuance and Repurchase of Convertible Bonds) Angela Corporation issues 2,000 convertible bonds at January 1, 2015. The bonds have a 3-year life and are issued at par with a face value of 1,000 per bond, giving total proceeds of 2,000,000. Interest is payable annually at 6%. Each bond is convertible into 250 ordinary shares (par value of 1 ). When the bonds are issued, the market rate of interest for similar debt without the conversion option is 8%. Instructions (a) Compute the liability and equity component of the convertible bond on January 1, 2015. (b) Prepare the journal entry to record the issuance of thewonvertible bond on January 1, 2015. (c) Prepare the journal entry to record the repurchase of the convertible bond for cash at January 1, 2018 , its maturity date