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Hi can someone please answer this question?? thank you Additional Problem 5 On January 1, 2017, Crane Corporation issued a series of 500 convertible bonds,

Hi can someone please answer this question?? thank you

Additional Problem 5

On January 1, 2017, Crane Corporation issued a series of 500 convertible bonds, maturing in five years. The face amount of each bond was $1,000. Crane received $536,000 for the bond issue. The bonds paid interest every December 31 at 4%; the market interest rate for bonds with a comparable level of risk was 3%. The bonds were convertible to common shares at a rate of ten common shares per bond. Craneamortized bond premiums and discounts using the effective interest method, and the companys year-end was December 31. On January 1, 2018, 100 of the bonds were converted into common shares. On June 30, 2018, another 100 bonds were converted into common shares. The bondholders chose to forfeit the accrued interest on these bonds. On January 1, 2019, when the fair value of the bonds was $313,300 due to a decrease in market interest rates, a conversion inducement of $17/bond was offered to the remaining bondholders to convert their bonds to common shares. All of the remaining 300 bonds were converted into common shares at this time. Prepare all required journal entries to record the above transactions.

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Date Account Titles and Explanation Debit Credit Jan. 1, 2017 Dec. 31, 2017 Jan. 1, 2018 Jun. 30, 2018 Dec. 31, 2018 Jan. 1, 2019

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