Nero Solutions Co. issued on $970,000, 7%, three-year bond for $976,000. The bond pays interest annually, at each year-end. At maturity, the bond can be repaid in cash or converted to 77,000 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%. Required: 1. Calculate the portion of the bond to be recorded as a liability. (Do not round Intermediate calculations. Round your final answer to the nearest whole dollar amount.) 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. Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amount.) View transaction let Journal entry worksheet Record the entry for issuance of bonds. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal 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. Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amount.) View transaction let 1 Record the entry for interest expense and annual cash payment. 2 Record the entry for interest expense and annual cash payment. 3 Record the entry for interest expense and annual cash payment. Note: = journal entry has been entered Record entry Credit Clear entry View general journal 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. Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amount.) View transaction llest Journal entry worksheet Record the entry for issue of shares towards maturity of bonds. Note: Enter debits before credits. Transaction 1 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. Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amount.) View transaction let 1 Record the entry for repayment on bonds payable. 2 Record the entry for lapse of conversion rights. Note: =journal entry has been entered Record entry x It Credit Clear entry View general journal 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 $980,000 was paid, of which $970,300 related to the liability and $9,700 related to the conversion option. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet 1 Record the entry for early repayment of bonds. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal