Nero Solutions Co$.$ issued an $$910,000,5\%,$ three$-$year bond for $$916,000.$ The bond pays interest annually, at each year$-$end. At maturity, the bond can be repaid in cash or converted to $71,000$ 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 $6\%.$

$($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)($Use appropriate factor$($s$)$ from the tables provided.$)$

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Required:

$1.$ Calculate the portion of the bond to be recorded as a liability. $($Round time value factor to $5$ decimal places. Round down the bond liability to nearest tenth dollar.$)$

$2.$ 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. Round time value factor to $5$ decimal places. Round your intermediate calculations to nearest whole dollar. Round down the bond liability to nearest tenth dollar.$)$

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$3.$ Provide the entries to record interest expense and the annual cash payment each year over the bond$$s three$-$year life. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round time value factor to $5$ decimal places. Round your intermediate calculations and final answers to the nearest whole dollar. Round down the bond liability to nearest tenth dollar.$)$

$4.$ Provide the entry to record the maturity of the bond, assuming that shares were issued. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round time value factor to $5$ decimal places. Round your intermediate calculations to nearest whole dollar. Round down the bond liability to nearest tenth dollar.$)$

$5.$ Provide the entry to record the maturity of the bond, assuming that cash is paid. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round time value factor to $5$ decimal places. Round your intermediate calculations to nearest whole dollar. Round down the bond liability to nearest tenth dollar.$)$

$6.$ Provide the entry to record early repayment of the bond, assuming that it was repaid in cash in an open market transaction after two complete years. Cash of $$920,000$ was paid, of which $$910,900$ related to the liability and $$9,100$ related to the conversion option. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round time value factor to $5$ decimal places. Round your final answers to the nearest whole dollar. Round down the bond liability to nearest tenth dollar.$)$