Where do I begin with this? I thought I understood it but no luck.

Thank you!

My Home X My Home X My Home X My Home x My Home X CengageNOWv2 | Onlin x + X C A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false S it Apps M Gmail @ YouTube . Maps Students X Mail - Shirley M Mu.. P Peter's Online Typin.. t Typing Lessons | O,... 6-1 Homework: Chapter 14 1 eBook Calculator Print Item ASSETS REVENUE 1. RE. 14-01 111 Cash 411 Sales Revenue ? 2. RE. 14-06 121 Accounts Receivable 141 Inventory EXPENSES 3. RE.14-11 152 Prepaid Insurance 500 Cost of Goods Sold 181 Equipment 511 Insurance Expense 4. RE. 14-12 198 Accumulated Depreciation 512 Utilities Expense 5. Ex. 14-04 521 Salaries Expense LIABILITIES 532 Bad Debt Expense 6. Ex. 14-04.Algo 1 Accounts Payable 540 Interest Expense 7. Ex. 14-17 231 Salaries Payable 541 Depreciation Expense 250 Unearned Revenue 559 Miscellaneous Expenses 8. Ex. 14-17.Algo 255 Bonds Payable 910 Income Tax Expense 256 Premium on Bonds Payable 261 Income Taxes Payable EQUITY 311 Common Stock aid-In Capital 331 Retained Earnings Progress: 7/8 items Check My Work Previous NextMy Home X My Home X My Home X My Home x My Home X CengageNOWv2 | Onlin x + X C A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false S it: Apps M Gmail @ YouTube . Maps Backflow Devices 3 New Tab Microsoft Office Ho... @ Home - > Students X Mail - Shirley M Mu.. P Peter's Online Typin. t Typing Lessons | O,. 6-1 Homework: Chapter 14 eBook Calculator Print Item Convertible Bonds 1. RE. 14-01 ? Instructions Chart of Accounts General Journal 2. RE. 14-06 3. RE.14-11 Instructions X 4. RE. 14-12 On January 1, 2015, when its $30 par value common stock was selling for $80 per share, a corporation issued $10 million of 10% convertible debentures due in 10 years. The conversion option allowed the holder of each $1,000 bond to convert it into six shares of the corporation's $30 par value common stock. The debentures 5. Ex. 14-04 were issued for $11 million. At the time of issuance, the present value of the bond payments was $8.5 million, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2016, the corporation's $30 par value common stock was split 3 for 6. Ex. 14-04.Algo 1. On January 1, 2017, when the corporation's $10 par value common stock was selling for $90 per share, holders of 40% of the convertible debentures exercised 7. Ex. 14-17 their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums. 8. Ex. 14-17.Algo Required: 1. Prepare the journal entry to record the original issuance of the convertible debentures. 2. Prepare the journal entry to record the exercise of the conversion option, using the book value method. Progress: 7/8 items Check My Work Previous Next