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Part $1$

On December$31,2021,$ Tugaboo Corporation issues $6\%,10-$year convertible bonds payable with a face value of $ $1$ comma $500$ comma $000.$ The semiannual interest dates are June $30$ and December $31.$ The market interest rate is $8\%.$ Tugaboo amortizes bond discounts using the$$ effective$-$interest method.

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Part $1$

Requirement $1.$ Use the PV function in Excel to calculate the issue price of the bonds. $($Round your answer to the nearest whole$$ dollar.$)$

The issue price of the bonds is

$.$

Part $2$

Requirement $2.$ Prepare an$$ effective$-$interest method amortization table for the first four semiannual interest periods. $($Round your answers to the nearest whole$$ dollar.$)$

Part $3$Part $4$Part $5$Part $6$

Tugaboo Corporation

Amortization Table

Semiannual

Interest

Discount

Discount Account

Bond Carrying

Interest Date

Payment

Interest Expense

Amortization

Balance

Amount

$12-31-2021$

$6-30-2022$

$12-31-2022$

$6-30-2023$

$12-31-2023$

Part $7$

Requirement $3.$ Journalize the following transactions. $($Record debits$$ first, then credits. Exclude explanations from all journal$$ entries.$)$

a$.$ Record the issuance of the bonds on December$31,2021.$ Credit Convertible Bonds Payable. $($Round your answers to the nearest whole$$ dollar.$)$

$$

Journal Entry

Date

Accounts

Debit

Credit

$2021$

Dec

$31$

Part $8$

b$.$ Record the payment of interest and amortization of the bonds on June$30,2022.($Round your answers to the nearest whole$$ dollar.$)$

Journal Entry

Date

Accounts

Debit

Credit

$2022$

Jun

$30$

Part $9$

c$.$ Record the payment of interest and amortization of the bonds on December$31,2022.($Round your answers to the nearest whole$$ dollar.$)$

Journal Entry

Date

Accounts

Debit

Credit

$2022$

Dec

$31$

Part $10$

d$.$ Record the conversion by the bondholders on July$1,2023,$ of bonds with a total face value of $ $600$ comma $000$ into $50$ comma $000$ shares of Tugaboo$\text{'}$s $$$$1-$par common stock. $($Round your answers to the nearest whole$$ dollar.$)$

Journal Entry

Date

Accounts

Debit

Credit

$2023$

Jul

$1$

Part $11$

Requirement $4.$ Show how Tugaboo would report the remaining bonds payable on its balance sheet at December$31,2023.($Calculate the discount by multiplying the discount calculated in the original amortization table by the fraction of bonds remaining. Round your answers to the nearest whole$$ dollar.$)$

Tugaboo Corporation

Partial Balance Sheet

December $31,2023$

Less: