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On December 31, 2018, Zugaboo Corporation issues 7%, 10-year convertible bonds payable with a face value of $1,500,000. The semiannual interest dates are June 30

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On December 31, 2018, Zugaboo Corporation issues 7%, 10-year convertible bonds payable with a face value of $1,500,000. The semiannual interest dates are June 30 and December 31. The market interest rate is 8%. Zugaboo amortizes bond discounts using the effective interest method. Read the requirements. Requirement 1. Use the PV function in Eher 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.) Zugaboo Corporation Amortization Table Discount Interest Expense Amortization Interest Semiannual Interest Date 12-31-2018 6-30-2019 Discount Account Balance Bond Carrying Amount Payment On December 31, 2018, Zugaboo Corporation issues 7%, 10-year convertible bonds payable with a face value of $1,500,000. The semiannual interest dates are June 30 and December 31. The market interest rate is 8%. Zugaboo amortizes bond discounts using the effective interest method. Read the requirements. 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 On December 31, 2018, Zugaboo Corporation issues 7%, 10-year convertible bonds payable with a face value of $1,500,000. The semiannual interest dates are June 30 and December 31. The market interest rate is 8%. Zugaboo amortizes bond discounts using the effective-interest method. Read the requirements. Journal Entry Date Accbants 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 luun 2 On December 31, 2018, Zugaboo Corporation issues 7%, 10-year convertible bonds payable with a face value of $1,500,000. The semiannual interest dates are June 30 and December 31. The market interest rate is 8% Zugaboo amortizes bond discounts using the effective-interest method. Read the requirements 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 Acchants Debit Credit Date 2019 Dec 31 d. Record the conversion by the bondholders on July 1, 2020, of bonds with a total face value of $600,000 into 120,000 shares of Zugaboo's $1-par common stock (Round your answers to the nearest whole dollar.) Journal Entry Chance fem On December 31, 2018, Zugaboo Corporation issues 7%, 10-year convertible bonds payable with a face value of $1,500,000. The semiannual interest dates are June 30 and December 31. The market interest rate is 8%. Zugaboo amortizes bond discounts using the effective-interest method. Read the requirements. d. Record the conversion by the bondholders on July 1, 2020, of bonds with a total face value of $600,000 into 120,000 shares of Zugaboo's $1-par common stock (Round your answers to the nearest whole dollar.) Journal Entry Date Accpunts Debit Credit 2020 Jul Requirement 4. Show how Zugaboo 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) Zugaboo Corporation On December 31, 2018, Zugaboo Corporation issues 7%, 10-year convertible bonds payable with a face value $1,500,000. The semiannual interest dates are June 30 and December 31. The market interest rate is 8%. Zugaboo amortizes bond discounts using the effective interest method. Read the requirements. ZUZU Jul 1 Requirement 4. Show how Zugaboo 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) Zugaboo Corpor Son Partial Balance Sheet December 31, 2020 Less

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