File Edit View Go Tools Window Help Accounting 300 (page 905 of 1,556) 2017, and $9 on December 31, 2018. Com pute Ferraro's compensation expense for 2017 and 2018. EXERCISES E16-1 (L01,2) EXCEL (Issuance and Conversion of Bonds) For each of the unrelated transactions described below, present the entry(ies) required to record each transaction. 1. Grand Corp. issued $20,000,000 par value 10% convertible bonds at 99, If the bonds had not been convertible, the com- pany's investment banker estimates they would have been sold at 95. Hoosier Company issued $20,000,000 par value 10% bonds at 98, One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $4. 2 3. Suppose Sepracor, Inc. called its convertible debt in 2017. Assume the following related to the transaction. The 11%, $10,000,000 par value bonds were converted into 1,000,000 shares of $1 par value common stock on July 1 July 1, there was $55,000 of unamortized discount applicable to the bonds, and the company paid an additional $75,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method. 0-year convertible bonds on June 1, 2017, at 98 datod nril 1 2017 with interest payable April 1 and October 1. Bond discount is amor- 16-2 (LO 1) (Conversion of Bonds) Aubrey Inc. issued $4,000,000 of 10%, 1