E16-1 (L01,2) EXCEL (Issuance and Conversion of Bonds) For each of the unrelated transactions described below, present 1. Grand Corp. issued $20,000,000 par value 10% convertible bonds at 99. If the bonds had not been convertible, the com- 2 Hoosier Company issued $20,000,000 par value 10 % bonds at 98 One detachable stock purchase warrant was issued with 3. Suppose Sepracor, Inc. called its convertible debt in 2017. Assume the following related to the transaction. The 11%, ar value common stock on July 1, 2017. On the entry(ies) required to record each transaction. pany's investment banker estimates they would have been sold at 95. each $100 par value bond. At the time of issuance, the warrants were selling for $4. $10,000,000 par value bonds were converted into 1,000,000 shares of $1 p July $75,000 to the bondholders to in value method. 1, there was $55,000 of unamortized discount applicable to the bonds, and the company paid an additional duce conversion of all the bonds. The company records the conversion using the book