This question is from old exam.

please answer the question with detials.

On January 1, 2014, XYZ Company issued a convertible bond with a par value of $100,000 in the market for $120,000. The bonds are convertible into 12,000 ordinary shares of $1 per share par value. The bond has a 5 -year life and has a stated interest rate of 10% payable annually. The market interest rate for a similar non-convertible bond at January 1,2014 , is 8%. Required: For XYZ Company: (a) Prepare the journal entry to record the issuance of the convertible bond on January 1, 2014. (b) Assume that 80% of the bonds were converted on December 31, 2016. The fair value of the liability component of the bond is determined to be $87,000 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 75% of the convertible bonds were repurchased on December 31, 2017, for $83,500 instead of being converted. As indicated, the liability component of the bond is determined to be $81,000 on December 31, 2017. Assume that the accrual of interest related to 2017 has been recorded