On December 31, 2018, Herndon Corporation issues 5%, 10-year convertible bonds payable with a face value of $ 2 comma 500 comma 000. The semiannual interest dates are June 30 and December 31. The market interest rate is 6%. Herndon amortizes bond discounts using the effective-interest method. Read the requirementsLOADING.... Requirement 1. Use the PV function in Excel Superscript to calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.) The issue price of the bonds is $ . Requirement 2. Prepare an effective-interest method amortization table for the first four semiannual interest periods. (Round your answers to the nearest whole dollar.) Herndon Corporation Amortization Table Semiannual Interest Discount Discount Account Bond Carrying Interest Date Payment Interest Expense Amortization Balance Amount 12-31-2018 6-30-2019 12-31-2019 6-30-2020 12-31-2020 Requirement 3. Journalize the following transactions. (Record debits first, then credits. Exclude explanations from all journal entries.) a. Record the issuance of the bonds on December 31, 2018. Credit Convertible Bonds Payable. (Round your answers to the nearest whole dollar.) Journal Entry Date Accounts Debit Credit 2018 Dec 31 b. Record the payment of interest and amortization of the bonds on June 30, 2019. (Round your answers to the nearest whole dollar.) Journal Entry Date Accounts Debit Credit 2019 Jun 30 c. Record the payment of interest and amortization of the bonds on December 31, 2019. (Round your answers to the nearest whole dollar.) Journal Entry Date Accounts Debit Credit 2019 Dec 31 d. Record the conversion by the bondholders on July 1, 2020, of bonds with a total face value of $ 1 comma 000 comma 000 into 90 comma 000 shares of Herndon's $1-par common stock. (Round your answers to the nearest whole dollar.) Journal Entry Date Accounts Debit Credit 2020 Jul 1 Requirement 4. Show how Herndon would report the remaining bonds payable on its balance sheet at December 31, 2020. (Calculate the discount by multiplying the discount calculated in the original amortization table by the fraction of bonds remaining. Round your answers to the nearest whole dollar.) Herndon Corporation Partial Balance Sheet December 31, 2020 Less: Choose from any list or enter any number in the input fields and then continue to the next question.

On December 31, 2018, Herndor Corporation issues 5%, 10-year convertible bonds payable with a face value of $2,500,000. The seriernual interest dates are June 30 and December 31. The market interest rate is 6%. Herridon amortizes bond discounts using the effective interest method. Read the requirements Ruyur IR 2. TIE IECUVE-ITELTUU TOILZEILI LUI IOI MISLIQUI MUSI MIESL pelous. In your answer. Ted ESL WIDT UUTIEI.) Herndon Corporation Amortization Table Discount Interest Expense Amortization Semiannual Interest Bond Carrying Discount Account Balance Requirements Interest Dalc Payment Amount 12 31 2018 6-30-2019 1 1. 2 2. 3. 12-31-2019 6.30 2020 Accounts Payable Cash 12-31-2020 Common Stock Requirement Convertible Honds Payable a. Record the Discount on Bonds Payable Interest Expense Interest Payable Date Paid-in Capital in Excess of Par - Common 2018 Premium on Bonds Payable Tst, the credits. Exclude explanations from all journal entries.) vertible Bonds Payable. (Round your answers to the nearest whole dollar Use the PV function in Excel" to calculate the issue price of the bands. Prepare an effective Interest method amortization table for the first four semiannual Interest periods Joumalize the following transactions: a. Issuance of the bonds on December 31, 2016. Credit Convertible Bonds Payable b. Payment of interest and amortization of the bond discount on June 30, 2019. c. Payment of interest and amortization of the bond discount on December 31, 2019. d. Conversion by the bondholders on July 1, 2020, of bonds with a total face value of S1,000,000 into 90,000 shares of Herndon's $1-par common stock Show how Herndon would report the remaining bords payable on its balance sheet at December 31, 2020. Debit Credit 31 Y 4. Print Done her the nament of internet and amortization of the hands on uns 20 2019 Round Wur Anciere to the neare whaled b. Record the payment of interest and amortization of the bonds on June 30, 2019. (Round your answers to the nearest whole dollar.) Journal Entry Date Accounts Debit Credit 2019 Jun 30 Accounts Payable Cash cember 31, 2019. (Round your answers to the nearest whole dollar.) Common Stock c. Record the p Convertible Bonds Payable Discount on Bonds Payable Interest Expense Date Interest Payable 2019 Paid-in Capital in Excess of Par - Common Dec 31 Premium on Bonds Payable Debit Credit d. Record the conversion by the bondholders on July 1, 2020, of bonds with a total face value of $1,000,000 into 90,000 shares of Herndon's $ 1-par common stock. (Round your answers to the nearest whole dollar.) Journal Entry Date Accounts Debit Credit 2020 Jul 1 ort the remaining bonds payable on its balance sheet at December 31, 2020. (Calculate the discount by multiplying the discount calculated in the original amortization table by the fraction of bonds whole dollar.) RE Accounts payable re Convertible bonds payable Current liabilities: Discount on bonds payable Premium on bonds payable ation Sheet 020 Less: Choose from any list or enter any number in the input fields and then continue to the next