Need E14-14

E14-13. Convertible Bonds, Conversion. On January 1, 2018, Mobile Technology, Jncorporated issued $850,000 of $1,000 par value, 6%, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest paymem due at the end of the period on July 1, 2018. The market rate of interest for similar non convertible bonds on the date of the bond issuewas 10%. However, because these bonds are convertible, the effective rate is 8%. Each bond is convertible imo 20 shares of Mobile Technology's S2 par valuecommon stock Assume there is no beneficial conversion option. Required a. Determine the issue price of the debt b Prepare the amortization table for the bond issue assuming that Mobile Technology uses the effective interest rate method of amortization c. Prepare the journal entry when Mobile Technology issued the bonds. d. Prepare the journal entry to record the first interest payment e. The bonds convened on January 1, 2021. Prepare the journal entry to record the bond conversion E14.14. Convertible Bonds, Conversion. Using the infonation provided in E14 13, complete the following require ments assuming that the effective rate of interest for convertible bonds is 4% on the date of issue Required a. Determ ne the issue price of the debt b Prepare the amortization table for the bond issue assuming that Mobile Technology uses the effective interest rate method of amortization c. Prepare the journal entry when Mobile Technology issued the bonds d. Prepare the journal entry to record the first interest payment e. Thebonds convened on January 5, 2021. Prepare the journal entry to record the bond conversion