The company has three bond issues and uses the effective interest method to amortize discounts/premiums. Information for each is below:

There was a bond issue with a par value of $250,000 on July 1, 2015 when the market rate of interest was 6%. The bonds have a coupon rate of 5% and interest is paid semiannually on January 1 and July 1. The bonds have a ten-year life when issued. This bond issue is convertible into common stock at the rate of 10 shares for every $1,000 of face value (note - common stock has a par value of $10 per share). On January 2, 2019, $50,000 of face value was converted into common stock. The company uses the book value method to record conversions. The market price of the stock was $90 per share when the bonds were converted.

On May 1, 2015, the company had a bond issue with principal of $200,000. The bond issue has a seven-year life. Interest is payable semi-annually on May 1 and November 1. The coupon rate is 7%. The market rate of interest at issue was 6%. On November 2, 2020, the company called the entire bond issue at 115.

On November 1, 2014, the company issued serial bonds at par. The face value of the issue was $150,000, and the coupon interest rate is 6%. Interest is paid annually on November 1st. The principal will be paid with six equal payments of $30,000 on November 1, 2015 through November 1, 2019.

Required:

Compute the price of the first two bonds (the serial bonds are issued at par).

Prepare amortization tables (effective interest method) for the first two bonds from the issuance date.

Prepare all journal entries needed for each bond from the date of issue through December 31, 2017. The company has a year-end of December 31st.

Prepare the journal entry to record the bond conversion (first bond) on January 2, 2019.

Prepare the journal entry to record the bond call (second bond) on November 2, 2020