Nero Solutions Co$.$ issued an $$830,000,7\%,$ three$-$year bond for $$836,000.$ The bond pays interest annually, at each year$-$end. At

maturity, the bond can be repaid in cash or converted to $63,000$ common shares at the investor's option. The market interest rate for

bonds of similar term and risk, but that are not convertible, is in the range of $8\%.$

Required:

Calculate the portion of the bond to be recorded as a liability. $($Do not round intermediate calculations. Round your final answer to

the nearest whole dollar amount.$)$

Bond liability

Provide the entry to record issuance of the bond. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry

required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar

amount.$)$ Twixt Corp. issued $$5,080,000$ of convertible bonds on $1$ January for $$4,868,000$ cash. The bond had the following terms:

Bonds mature in five years' time.

Annual interest, $7\%,$ is paid each $31$ December.

Bonds are convertible to $508,000$ common shares at maturity or can be repaid in cash. This choice is up to Twixt Corp.

Current market interest rates are $8\%.$

Required:

Assign a value to the liability and the equity portions of the bond. $($Do not round intermediate calculations. Round your final

answers to the nearest whole dollar amount.$)$Maritime Corp. is a junior mining company listed on the TSX$.$ The common share price of Maritime fluctuates in value. Recent swings

went from a high of $$16$ to a low of $$0\mathrm{.}50.$ Maritime issued stock options on $1$ September $205$ to a consultant, in exchange for a

project completed over the last year. The consultant estimated her time was worth $$49,000,$ but the company estimated that it could

have had the necessary work done for about $$42,000$ cash. The options specified that $5,000$ common shares could be bought for

$$0\mathrm{.}40$ per share at any time over the next $10$ years. The market price of common shares was $$2\mathrm{.}50$ on the day the options were

issued. At the same time options were issued to the consultant, identical options were issued to the company lawyer for work done to

date. An option pricing model valued each set of stock options at $$46,000.$

Required:

Provide journal entries to record issuance of the two sets of options. $($If no entry is required for a transaction$/$event$,$ select $"$No

journal entry required" in the first account field.$)$

Journal entry worksheet

Record the entry for granting stock rights towards Consulting expense.