I need the solution to P9-71A from Th?e book Financial Accounting 10th Edition

On 12/31/2014, Herndon Corp issues 5 1/2 %, 10 year convertible bonds payable with a maturity value of $4,000,000. The semi-annual interest dates are Jun 30th and Dec. 31st. The market interest rate is 6%. Herndon Corp. amortized bond discount by the effective interest method.

1. Use the PV function in Excel to calculate the issue price of the bonds

2. Using Exhibit 9-4 of the bond discount as a model, prepare an effective-interest method amortization table for the term of the bonds.

3. Journalize the following transactions:

a. Issuance of the bonds on Dec 31, 2014 Credit Convertible Bonds Payable

b. Payment of interest and amortization of the bond discount on June30, 2015

c. Payment of the interest and amortization of the bond discount on Dec31, 2015

d. Conversion by the bondholders on July 1, 2016 of the bonds with face value of $1,600,000 into 120,000 shares of the Herndon corps $1-par common stock

4. Show how H. Corp would report the remaining bonds payable on its balance sheet at Dec 31, 2016

Exhibit 9-4 Amortization of Bond Discount Panel A-Bond Data Maturity date-January 1, 2019 Market interest rate at time of issue-10% annually, 5% semiannually Issue price-$96,149 1 Issue date January 1, 2014 2 Face (par or maturity) value-$100,000 3.1-Stated interest rate-996 Interest paid-4 1/2% semiannually, 4 $4,500 $100,000x 0.09 x 6/12 5 Panel B-Amortization Table (Using Excel) A1 Interest Expense (0.05* Preceding Discount Account Balance Carrying Amount Semiannual Discount Amortization (Preceding InterestInt Pmt (0.045 Bond 1 Date Maturity Value) Carrying Value) (C-B) E-D) $100,000 -E) 1/1/2014 7/1/2014 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,807 4,823 4,839 4,856 4,874 4,892 4,912 4,933 4,954 4,961* 307 323 339 356 374 392 412 433 454 461 3,544 3,221 2,882 2,526 2,152 1,760 1,348 915 461 96,456 96,779 97,118 97,474 97,848 98,240 98,652 99,085 99,539 100,000 4 7/1/2015 1/1/2016 7/1/2016 1/1/2017 7/1/2017 1/1/2018 7/1/2018 12 1/1/2019 6 10