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number 2. please provide excell sheets Snyder Software Inc. has successfully developed a new spreadsheet program. To produce and market the program, the company needed
number 2. please provide excell sheets
Snyder Software Inc. has successfully developed a new spreadsheet program. To produce and market the program, the company needed $2 million of additional financing. On January 1, 2014, Snyder borrowed money as follows. 1. Snyder issued $500,000, 11%, 10-year convertible bonds. The bonds sold at face value and pay semiannual interest on January 1 and July 1. Each $1,000 bond is convertible into 30 shares of Snyder's $20 par value common stock. 2. Snyder issued $1 million, 10%, 10-year bonds at face value. Interest is payable semiannually on January 1 and July 1. 3. Snyder also issued a $500,000, 12%, 15-year mortgage payable. The terms provide for semiannual installment payments of $36,324 on June 30 and December 31. Instructions 1. For the convertible bonds, prepare journal entries for: (a) The issuance of the bonds on January 1, 2014. (b) Interest expense on July 1 and December 31, 2014. (c) The payment of interest on January 1, 2015. (d) The conversion of all bonds into common stock on January 1, 2015, when the market price of the common stock was $67 per share. 2. For the 10-year, 10% bonds: (a) Journalize the issuance of the bonds on January 1, 2014. (b) Prepare the journal entries for interest expense in 2014. Assume no accrual of interest on June 30. (c) Prepare the entry for the redemption of the bonds at 101 on January 1, 2017, after paying the interest due on this date. 3. For the mortgage payable: (a) Prepare the entry for the issuance of the note on January 1, 2014. (b) Prepare a payment schedule for the first four installment payments. (c) Indicate the current and noncurrent amounts for the mortgage payable at Decem- ber 31, 2014Step by Step Solution
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