Question: help needed with calculations. show work to explain calculations if possible! No. Date Account Titles and Explanation (a) Oct. 1. 2026 Discount on Bonds Payable



No. Date Account Titles and Explanation (a) Oct. 1. 2026 Discount on Bonds Payable Paid-in Capital in Excess of Par-Common Stock (To record conversion of bonds to common stock) Oct. 1. 2026 Interest Payable Cash (To record payment of interest due on converted bonds) Carla Inc, issued $6,150,000 of convertible 5 -year bonds on July 1,2025 . The bonds provide for 6% interest payable semiannually on January 1 and July 1 . The discount in connection with the issue was $108,000, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 15 shares of Carla Inc's $1 par value common stock for each $1,000 of bonds. On October 1,2026,$738,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter 0 for the amounts. List all debit entries before credit entries.) (a) October 1, 2026. (Assume the book value method is used.) (b) October 31,2026 . (c) December 31, 2026, including closing entries for end-of-year. (b) Oct. 31, Interest Expense 2026 Discount on Bonds Payable (To record amortization of discount on bonds) Oct. 31, Interest Expense 2026 Interest Payable (To record accrual of interest payable on bonds) Dec. (c) 31. 2026 Discount on Bonds Payable (To record amortization of discount on bonds) Dec: 31 , Interest Expense Intereat Payable (To record accrual of interest payable on bonds) Dec 31 , 2026 Income Summary 27,870 Interest Expense (To close expense account)
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