On January 1, 2015, Xeon Co. issued 15-year callable and convertible bonds with a face value of $2,000,000 and a stated interest rate of 10%, payable semiannually on July 1 and January 1. The bonds were sold to yield 12%.

1. Calculate the issue price of the bond in dollars
2. Calculate the issue price of the bonds as a percentage
3. Make the journal entry to record the issuance of the bond on January 1, 2015
4. Prepare the amortization table for the years 2015 & 2016
5. Make the journal entries for 2016
6. How much was the interest expense for 2016?
7. On December 31, 2016 $600,000 of the bonds were retired at 103. Make the journal entry to record the retirement
8. On December 31, 2016 $800,000 of bonds were converted into $2 par value common stock. Each bond is convertible into 100 shares of stocks. Make the journal entry to record the conversion