E$16-7($Issuance and Conversion of Bonds$)$ For each of the unrelated transactions described below,

present the entry$($ies$)$ required to record each transaction.

$1.$ Coyle Corp. issued $10,000,000$ par value $10\%$ convertible bonds at $99.$ If the bonds had not been convertible, the company$$s investment banker determines that they would have been sold at $95.$

$2.$ Lambert Company issued $10,000,000$ par value $10\%$ bonds at $98.$ One share warrant was issued with

each $100$ par value bond. At the time of issuance, the warrants were selling for $4.$ The net present

value of the bonds without the warrants was $9,600,000.$

$3.$ Sepracor, Inc. called its convertible debt in $2015.$ Assume the following related to the transaction.

The $11\%,10,000,000$ par value bonds were converted into $1,000,000$ shares of $1$ par value ordinary

shares on July $1,2015.$ The carrying amount of the debt on July $1$ was $9,700,000.$ The Share Premium$$

Conversion Equity account had a balance of $200,000,$ and the company paid an additional $75,000$ to

the bondholders to induce conversion of all the bonds. The company records the conversion using the

book value method.