CULAT PRINTER VERS BACK Exercise 16-5 The December 31, 2017, balance sheet of Sage Corp. is as follows. 10% callable, convertible bonds payable (semiannual interest dates April 30 and October 31; convertible into 6 shares of $25 par value common stock per $1,000 of bond principal; matunity date April 30, 2023) $417,000 Discount on bonds payable 7,488 $409,512 On March 5, 2018, Sage Corp. called all of the bonds as of April 30 for the principal plus interest through April 30. By April 30, all bondholders hed exercised their conversion to common stock as of the interest payment date. Consequently, on April 30, Sage Corp, paid the semiannual interest and issued shares of common stock for the bonds. The discount is amortized on a straight-line basis. Sage uses the book value method. Prepare the entries to record the interest expense and conversion on Aprl 30, 2018. Reversing entries were made on January 1, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter "" for the amounts.) Account Titles and Explanation Debit Credit (To record interest expense.) CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEXT conversion to common stock as of the interest payment date. Consequently, on April 30, Sage Corp. paid the semiannual interest and issued shares of common stock for the bonds. The discount is amortized on a straight-line basis. Sage uses the book value method Prepare the entries to record the interest expense and conversion on April 30, 2018. Reversing entries were made on January 1, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. if no entry is required, select he Entryfor the account title, and enter for the amounts.) Account Titles and Explanation Debit Credit (To record interest expense.) (To record the conversion) Question Attempts: O of 3 used sAVE FOR LATER