On January 1, '16, Morgan Enterprises, LLC issued 8%, 20-year bonds with a face amount of $500,000 at 104 with an effective interest rate of 7%. Interest is payable semiannually. On Jan 1st '17 the Company redeemed these bonds at 102 (after paying the interest) . Instructions - Prepare the entries for the following transactions: a) Journalize the issuance of the bonds. b) Record the entry for the semiannual interest expense on July 1st, if the Company uses the straight-line method of amortization. c) Record the entry for the semiannual interest expense on Dec 31st, if the Company uses straight-line method of amortization. d) Journalize the redemptions of these bonds on Jan 1st '17 (assuming the Company uses straight-line method of amortization). e) If on Jan 1st '17 (instead of redeeming the bonds) Morgan converts all of these bonds to 10,000 shares of $10 par value common stock. The stock has a total market value of $600,000. Record the appropriate journal entry.