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Presented below are three independent situations: (a) Best Corporation purchased $390,000 of its bonds on June 30, 2017, at 103 and immediately retired them. The

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Presented below are three independent situations: (a) Best Corporation purchased $390,000 of its bonds on June 30, 2017, at 103 and immediately retired them. The carying value of the bonds on the retirement date was $371,000. The bonds pay annual interest and the interest payment due on June 30, 2017, has been made and recorded. (b) Carson, Inc. purchased $400,000 of its bonds at 97 on June 30, 2017, and immediately retired them. The carrying value of the bonds on the retirement date was $425,000. The bonds pay annual interest and the interest payment due on June 30, 2017, has been made and recorded. Ritz Company has $80,000, 12%, 10-year convertible bonds outstanding. These bonds were sold at face value and pay annual interest on December 31 of each year. The bonds are convertible into 40 shares of Ritz $5 par value common stock for each $1,000 par value bond. On December 31, 2017, after the bond interest has been paid, $30,000 par value of bonds was converted. The market value of Valley's common stock was $38 per share on December 31, 2017 (c) Instructions: For each independent situation above, prepare the appropriate journal entry for the redemption or conversion of the bonds. Note: Write clearly and use complete account names [Do not abbreviate]

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