Nero Solutions Co. issued an $820,000, 6%, three-year bond for $826,000. The bond pays interest annually, at each year-end. At maturity, the bond can be repaid in cash or converted to 62,000 common shares at the investors option. The market interest rate for bonds of similar term and risk, but that are not convertible, is in the range of 7%. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required:

1. Calculate the portion of the bond to be recorded as a liability. (Round time value factor to 5 decimal places. Round down the bond liability to nearest tenth dollar.)

2. Provide the entry to entry to record issuance of the bond. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places. Round your intermediate calculations to nearest whole dollar. Round down the bond liability to nearest tenth dollar

3. Provide the entries to record interest expense and the annual cash payment each year over the bonds three-year life. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places. Round your intermediate calculations and final answers to the nearest whole dollar. Round down the bond liability to nearest tenth dollar.)

4. Provide the entry to record the maturity of the bond, assuming that shares were issued. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places. Round your intermediate calculations to nearest whole dollar. Round down the bond liability to nearest tenth dollar.)

5. Provide the entry to record the maturity of the bond, assuming that cash is paid. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places. Round your intermediate calculations to nearest whole dollar. Round down the bond liability to nearest tenth dollar.)

6. Provide the entry to record early repayment of the bond, assuming that it was repaid in cash in an open market transaction after two complete years. Cash of $830,000 was paid, of which $821,800 related to the liability and $8,200 related to the conversion option. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places. Round your final answers to the nearest whole dollar. Round down the bond liability to nearest tenth dollar.)