Nero Solutions Co. Issued an $920,000, 7%, three-year bond for $926,000. The bond pays interest annually, at each year-end. At maturity, the bond can be repaid in cash or converted to 72,000 common shares at the investor's option. The market interest rate for bonds of similar term and risk, but that are not convertible, is in the range of 8%. (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.) Bond liability 2. Provide the 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.) View transaction list Journal entry worksheet < 1 Record the entry for issuance of bonds. Novi 2. Provide the 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.) View transaction list Journal entry worksheet < Record the entry for issuance of bonds. Note: Enter debits before credits. Transaction General Journal Debit Credit View general journal Record entry Clear entry 3. Provide the entries to record interest expense and the annual cash payment each year over the bond's 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.) View transaction list Journal entry worksheet 2 3 Record the entry for interest expense and annual cash payment. Note: Enter debits before credits. Year Year 1 General Journal Debit Credit View general journal Record entry Clear entry 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.) View transaction list Journal entry worksheet Record the entry for issue of shares towards maturity of bonds. Note: Enter debits before credits, Transaction General Journal Debit Credit Record entry Clear entry View general journal 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.) View transaction list Journal entry worksheet 1 2 Record the entry for repayment on bonds payable. Note: Enter debits before credits.. Transaction General Journal Debit Credit View general journal Record entry Clear entry 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 $930,000 was paid, of which $920,800 related to the liability and $9,200 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 doller.) View transaction list Journal entry worksheet Record the entry for early repayment of bonds. Note: Enter debits before credits. Transaction General Journal Debit Credit