Needing help with a question in Intermediate Accounting II

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Sign out X D2L 6-1 Homework: Chapter x _ Southeast Cinemas | Cit x | :Intensify: CengageNOWv2 | Onlin X * Homework Help - Q&A x * BUS 225 - SNHU * + X C & https://v2.cengagenow.com/ilmn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false A 'S 5-2 Homework: Chapter 14 eBook Convertible Bonds ? Instructions Chart of Accounts General Journal Instructions On January 1, 2015, when its $30 par value common stock was selling for $80 per share, a corporation issued $30 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 were issued for $31 million. At the time of issuance, the present value of the bond payments was $28.50 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 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 their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums. 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. Chart of Accounts CHART OF ACCOUNTS Corporation General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue Check My Work Previous Assignment Score: 96.28% Save and Exit Submit Assignment for Grading 71 F Cloudy O X W 2:21 PM 4/16/2022 2Sign out X D2L 6-1 Homework: Chapter X | Southeast Cinemas | Cit x ) :Intensify: CengageNOWv2 | Onlin X * Homework Help - Q&A x * BUS 225 - SNHU * + X C & https://v2.cengagenow.com/ilmn/takeAssignment/takeAssignmentMain.do?invoker = &takeAssignmentSessionLocator=&inprogress=false 5-2 Homework: Chapter 14 eBook Chart of Accounts ? CHART OF ACCOUNTS Corporation General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 181 Equipment 511 Insurance Expense 198 Accumulated Depreciation 512 Utilities Expense 521 Salaries Expense LIABILITIES 532 Bad Debt Expense 211 Accounts Payable 540 Interest Expense 231 Salaries Payable 541 Depreciation Expense 250 Unearned Revenue 559 Miscellaneous Expenses 255 Bonds Payable 910 Income Tax Expense 256 Premium on Bonds Payable 261 Income Taxes Payable FOUITY Check My Work Previous Assignment Score: 96.28% Save and Exit Submit Assignment for Grading 71 F O X W 2:21 PM Cloudy 4/16/2022 2Sign out X D2L 6-1 Homework: Chapter X _ Southeast Cinemas | Cit x ) ::Intensify: X CengageNOWv2 | Onlin X * Homework Help - Q&A x * BUS 225 - SNHU * + X C & https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker =&takeAssignmentSessionLocator=&inprogress=false S V O 5-2 Homework: Chapter 14 eBook EQUITY 311 Common Stock 315 Additional Paid-In Capital 331 Retained Earnings General Journal Shaded cells have feedback. Prepare the journal entry to record the original issuance of the convertible debentures on January 1, 2015. Additional Instruction How does grading work? Refer to the Chart of Accounts provided for the exact wording of the answer choices for text entries. GENERAL JOURNAL Score: 37/37 DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 Jan. 1 Cash 31,000,000.00 2 Bonds Payable 30,000,000.00 Premium on Bonds Payable 1,000,000.00 Points: 717 Check My Work Previous Assignment Score: 96.28% Save and Exit Submit Assignment for Grading javascript:void(0) 71 F Cloudy O X W 2:21 PM 4/16/2022 2Sign out X D2L 6-1 Homework: Chapter X _ Southeast Cinemas | Cit x ) :Intensify: CengageNOWv2 | Onlin x * Homework Help - Q&A x * BUS 225 - SNHU * + X C & https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false S V O 5-2 Homework: Chapter 14 eBook Feedback Check My Work Prepare the journal entry to record the exercise of the conversion option, using the book value method on January 1, 2017. Additional Instruction How does grading work? Refer to the Chart of Accounts provided for the exact wording of the answer choices for text entries. GENERAL JOURNAL Score: 45/49 DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Jan. 1 Bonds Payable 12,000,000.00 Premium on Bonds Payable 320,000.00 Common Stock 240,000.00 Additional Paid-In Capital 12,080,000.00 Points: 8.27/9 Feedback Check My Work Check My Work Previous Assignment Score: 96.28% Save and Exit Submit Assignment for Grading javascript:void(0) 71 F Cloudy O X W 2:22 PM 4/16/2022 2