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Please answer the following question. Thank you very much for your assistance. On January 1, 2017, Fermi Motors Inc. Issued $5000 in principal of 3-year

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Please answer the following question. Thank you very much for your assistance.

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On January 1, 2017, Fermi Motors Inc. Issued $5000 in principal of 3-year convertible bonds with a 396 stated interest rate and semi-annual payments (non- amortizing debt]. Holders of the bonds may redeem and receive 40 shares of common stock per $1000 in principalredeemed. The bonds were sold at par. The common stock has zero par value, The company intends to issue new shares if holders redeem the bonds. At maturity, the price of Fermi Motors's common stock was 565 per share, and holders of the bonds redeemed the band for stock. Record the journal entry for the retirement of the bonds and the issuance of stock. (Select all that apply.) Dr. Cash $4000 DO Cr. Additional paid-in capital $4000 Dr. Debt payable $5000 O Cr. Additional paid-in capital $5000 Cr. Common stock at par $65 Cr. Cash $5000 Dr. Debt payable $6500 Cr. Common stock at par 50

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