Bond Payable Transactions Rayburn, Inc. had the following bond-related transactions over the course of several years. Refer to the documents under the Exhibits tab for additional information on each of the transactions. On January 1, year 7. Rayburn issued 5-year bonds, priced to yield 6%. On July 1, year 9, Rayburn converted the bonds into common stock. For each journal entry, click in the "Account Title" cell and select the appropriate answer from the menu provided. For each indicated cell in the "Debit" or "Credit" column, enter the appropriate dollar amount; round all amounts to the nearest whole number. If the amount is $0, you must enter "0" in the cell to receive credit. 1. Prepare the journal entry to record the issuance of bonds on January 1 year 7 Account Title Debit Credit 150,000 2. Prepare the journal entry to record the bond conversion on July 1 year 9. using the book value method. Debit Credit Account Title Bond Payable 110,000 $150,000 Five Year Bonds RAYBURN, INC. Interest of 9% is payable semiannually on June 30 and December 31 CORPORATE BOND Dated this first day of January. Year 7 CE Por . D Document #2: RAYBURN INTEROFFICE MEMO From: Controller To: Accounting Re: Bond Conversion Date: July 1, Year 9 On this day bonds with a face amount of $150,000 were converted into 1,000 shares of $110 par common stock Document #3: Source: WSJ - July 1, Year 9 Trades Rayburn, Inc. (DOW: RAY) Last Trade 169 Change 1 4.0 (2.42%) Prev Close 165 Open 167 Bid 168 Ask 169 TABLE I - Present Value of a Single Payment Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 2 2 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 3 0.9706 0.9423 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 4 0.9610 0.9238 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 5 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 6 0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 7 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 8 0.9235 0.8535 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 8 9 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 10 0.9053 0.82030.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 TABLE II - Present Value of an Ordinary Annuity Period 1% 296 3% 5% 6% 7% 8% 9% 10% 1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 2 1.9704 1 9416 1.9135 1.8861 18594 1.8334 1.8080 1.7833 1.7591 1.7355 2. 3 2.5313 2.4869 2.9410 2.8839 2.8286 2.7751 2.72322.6730 2.6243 2.5771 3.9020 3.8077 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 4 3.2397 3.1699 5 4.8534 4.7135 45797 4,4518 4 3295 4.2124 4.1002 3.9927 3.8897 3.7908 6 5.7955 5.5014 5.4172 5.2421 5.07574.9173 4.7665 4.6229 4.4859 4.3553 7 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 7 B 9 7.6517 7.3255 7,0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 8.5660 8.1622 7.7861 7.4353 7 1078 6.8017 6.5152 6.2469 5.9952 5.7590 9 10 9.4713 8.9826 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446