Second. Lin Company issued a convertible bond with a par value of $100,000 in the market for $120,000. The bonds are converter 12.000 ordinary shares of $1 por share par value. The band has a year ife and has a stated interest rate of 10% payable annual The market interest rate for a similar non-convertible bond of January 1, 2014, 3%. The ability component of the bond is computed to be 107986. The following bond amortization schedule is provided for this bond EFFECTIVE-INTEREST METHOD 10% BOND DISCOUNTED AT 8% Cash Paid Date 1/1/14 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 $10,000 10,000 10,000 10,000 10,000 Interest Expense $8,639 8.530 8.412 8.285 8.148 Premium Amortized $1,361 1.470 1.588 1,715 1.852 Carrying Amount of Bonds $107.986 106,625 105,155 103.567 101 852 100.000 Instructions (a) Prepare the journal entry to record the issuance of the convertible bond on January 1, 2014 (b) Assume that the bonds were converted on December 31, 2016. The fair value of the ability component of the bond is determined to be $108,000 on December 31, 2016. Prepare the journal entry to record the conversion on December 31, 2016. Assume that the accrual of interest related to 2016 has been recorded (C) Assume that the convertible bonds were repurchased on December 31, 2016, for $111,000 instead of being converted As indicated the liability component of the bond is determined to be $108.000 on December 31, 2016. Assume that the accrual of interest related to 2016 has been recorded