Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Help with b, c, and d please! On January 1, 2018, Clear View Video, Incorporated issued $1,200,000 of $1,000 par value, 10%, 6-year bonds. Interest
Help with b, c, and d please!
On January 1, 2018, Clear View Video, Incorporated issued $1,200,000 of $1,000 par value, 10%, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2018. The market rate of interest for similar non-convertible bonds on the date of the bond issue was 12%. The bonds were sold for $1,580,712, yielding an effective rate of 4%. Each bond is convertible into 80 shares of Clear View's $2 par value common stock. Assume that there is no beneficial conversion option. Interest Interest Amortization Read the requirements. Date January 1, 2018 July 1, 2018 $ January 1, 2019 July 1, 2019 January 1, 2020 July 1, 2020 January 1, 2021 60,000 $ 60,000 60,000 60,000 60,000 60,000 31,614 $ 31,047 30,467 29,877 29,274 28,660 28,386 28,953 29,533 30,123 30,726 31,340 Value 1,580,712 1,552,326 1,523,373 1,493,840 1,463,717 1,432,991 1,401,651 Requirement b. Prepare the journal entry to record the bo values from previous calculations.) X i - Requirements Account Bond Payable b. Prepare the amortization table for the bond issue through January 1, 2021, assuming that Clear View uses the effective interest rate method of amortization. Prepare the journal entry to record the bond issue. Prepare the journal entry to record the first interest payment. The bonds converted on January 1, 2021. Prepare the journal entry to record the bond conversion C. Choose from any list or enter any number in the input fi d. parts 2 remaining Print DoneStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started