Needing help with this Intermediate Accounting II Question

Ex. 14-17

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/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false VO 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 $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 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 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 Microsoft Edge X Check My Work Facebook h d Bryant: Smack them with my belt Assignment Score: 96.28% www.facebook.com 71 F Cloudy O X W 2:30 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 Equipmen 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 EQUITY Check My Work Previous Next Assignment Score: 96.28% Save and Exit Submit Assignment for Grading 71 F O X W 2:30 PM Cloudy 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 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. How does grading work? PAGE GENERAL JOURNAL Score: 37/37 DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Jan. 1 Cash 11,000,000.00 N Premium on Bonds Payable 1,000,000.00 Bonds Payable 10,000,000.00 Points: 717 Feedback Check My Work Previous Next Assignment Score: 96.28% Save and Exit Submit Assignment for Grading 71 F Cloudy O X W 2:31 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 VO 5-2 Homework: Chapter 14 eBook Check My Work Prepare the journal entry to record the exercise of the conversion option, using the book value method on January 1, 2017. How does grading work? PAGE 1 GENERAL JOURNAL Score: 42/49 DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Jan. 1 Premium on Bonds Payable 4,000,000.00 IN Bonds Payable 480,000.00 Common Stock 720,000.00 Additional Paid-In Capital 2,800,000.00 Points: 7.71/9 Feedback Check My Work Record the issuance of convertible debt in the same manner as the issuance of nonconvertible debt, without separately recording a value for the conversion feature in Additional Paid-In Capital. Check My Work Previous Next Assignment Score: 96.28% Save and Exit Submit Assignment for Grading 71 F O X W 2:31 PM Cloudy 4/16/2022 2