E16-5 (Conversion of Bonds) Schuss Inc. issued E3,000,000 of 10%, 10-year convertible bonds on April 1, 2015, at 98. The bonds were dated April 1, 2015, with interest payable April 1 and October 1. Bond discount is amortized semiannually using the effective-interest method. The net present value of the bonds without the conversion feature discounted at 12% (its market rate) was E2,655,888. On April 1, 2016, 1,000,000 of these bonds were converted into 30,000 shares of (20 par value ordi- nary shares. Accrued interest was paid in cash at the time of conversion. n = 10x2 = 20 Instructions XI : 12%+2= 5% (a) Prepare the entry to record the issuance of the convertible bond on April 1, 2015. (b) Prepare the entry to record the interest expense at October 1, 2015. (c) Prepare the entry(ies) to record the conversion on April 1, 2016. (The book value method is used.) 3 sea,Coo Xoxx6. ) x 11.46912 = 2,655,888