westion The bonds are convertible into 20,000 ordinary shares of $1 per share par value. The bond has a 5-year life and has a On January 1, 2017, Lin Company issued a convertible bond with a par value of $100,000 in the market for $120,000 interest rate of 10% payable annually. The market interest rate for a similar non-convertible bond at January 1, 2017, The liability component of the bond is computed to be $107,986 (present value). The following bond amortization schedule is provided for this bond. EFFECTIVE-INTEREST METHOD 10% BOND DISCOUNTED AT 8% Date 1/1/17 Cash Paid Interest Expense Carrying Amount of Premium Amortized Bonds $107,986 12/31/17 $10,000 $8,639 $1,361 106,625 12/31/18 10,000 8,530 1,470 105,155 12/31/19 10,000 8,412 1,588 103,567 12/31/20 10,000 8,285 1,715 12/31/21 10,000 8,148 1,852 101,852 100,000 equirement: 1. Prepare the journal entry to issue the bonds on Jan 1 2017? 2. Prepare the journal entry to record the interest expense on Dec 31st 2018? 3. Assuming that bonds were converted into ordinary shares on Dec 31st 2019. Prepare the journal e 4. Assuming that bonds were repurchased on Dec 31st 2018 where the fair value of the conv 110,000, while the fair value of the liability component was 105,000. Prepare the journal entry 5. Assuming that bonds were held till maturity date. Prepare journal entries to pay the inte principal amount? 5