Im stuck on #2 computing beginning balance Discount account balance preceding (E - D) On December 31,2021 , Caraboo Corporation issues 3%, 10 -year convertible bonds payable with a face value of $3,000,000. The semiannual interest dates are June 30 and December 31. The market interest rate is 8%. Caraboo amortizes bond discounts using the effective-interest method.

1. Use the PV function in Excel to calculate the issue price of the bonds. 2. Prepare an effective-interest method amortization table for the first four semiannual interest periods. 3. Journalize the following transactions: a. Issuance of the bonds on December 31,2021 . Credit Convertible Bonds Payable. b. Payment of interest and amortization of the bond discount on June 30,2022 . c. Payment of interest and amortization of the bond discount on December 31,2022 . d. Conversion by the bondholders on July 1,2023 , of bonds with a total face value of $1,200,000 into 120,000 shares of Caraboo 's $1-par common stock. 4. Show how Caraboo would report the remaining bonds payable on its balance sheet at December 31, 2023 .

Coupon payment = $3000000*8%/2 = $120,000
$3,000,000	Issuance of bonds
0.08
2
$120,000	coupon payment
r = 8%/2	r = 4%
n = 10 * 2	n = 20
($2,592,290)	bond issue price
$2,592,290	bond issue price
Face value * Semiannual interest rate (stated) = Amount of interest
$3,000,000	Face value
0.40%	Semiannual interest rate (stated)
$12,000	Amount of interest
$7,200
	Bond Discount = Face Value - Issue price
$3,000,000	Face value
$2,592,290	bond issue price
$407,710	Bond Discount
Semiannual interest rate date	Interest rate( 0.4% * matrity value)	interest expense (2.5% * proceeding bond carrying value)	Discount amortization (c - b)	Discount account balance preceding (E - D)	Bond carrying a mount 3,000,000 million - E)
12/31/2021				$407,710	$2,592,290
6/30/2022
12/31/2022
6/30/2023
12/31/2023