On January 1, Year 1 , Huckleberry Corporation issued 1,000 convertible bonds with a stated /coupon rate of 10 %. Each $ 1,000 face value bond is convertible into 40 shares of $ 10 par common stock and the conversion feature cannot be separated from the bonds . The bonds have a 5 - year maturity and pay interest semi - annually on July and January 1. The bonds were issued to yield 12 % (i.e. , the market rate for bonds with similar risk and maturity at the time of issuance ) . Huckleberry Corporation , an entity with upstanding financial reporting practices , uses the effective interest method to amortize any bond discount or premium . All 1,000 convertible bonds were purchased by Flathead Cherry Incorporated . Management at Flathead Cherry Incorporated has the intent and ability to hold the bonds until maturity. Additionally , Huckleberry had 750,000 shares of common stock and 100,000 $ 100 par 5% preferred stock outstanding as of January 1 , Year 1. Huckleberry issued 500,000 more common shares on June 30 , Year 1. Huckleberry Corporation's net income for the year ending December 31 , Year 1, was $ 3,000,000, and it paid $ 750,000 of cash dividends in Year 1. Huckleberry's tax rate is 20 % .

5%6%10%12%PV of $1 for 5 periods0.78350.74730.62090.5674PV OF $1 for 10 periods0.61390.55840.38550.3220PV O $1 Annuity for 5 periods4.32954.21243.79083.6048PV of $1 Annuity for 10 periods7.72177.36016.14465.6502

From Huckleberry and Flathead Cherry's perspectives, what journal entries are required on 1/1/14?

From Huckleberry and Flathead Cherry's perspectives, what journal entries are required on 7/1/1

From Huckleberry and Flathead Cherry's perspectives, what journal entries are required on 12/31/1

What is the carrying value of the bond on 12/31/1?