*NOTE: LONG ANSWER QUESTIONS MUST BE SUBMITTED SEPERATELY THROUGH THE MOODLE LINK PROVIDED NO RESPONSE ENTERED HERE WILL BE MARKED. YOU MUST USE THE WORD AND/OR EXCEL TEMPLATES PROVIDED. YOU MAY SUBMIT 1) THE COMPLETED WORD AND/OR EXCEL DOCUMENTS OR 2) PRINT THE WORD AND/OR EXCEL TEMPLATES, COMPLETE BY HAND, AND SUBMIT YOUR SCANNED RESPONSE* *LONG ASWER QUESTION 4-YOUR HIGHEST TWO MARKS OF LONG ANSWER QUESTIONS 4-6 WILL BE COUNTED IN YOUR GRADE (Unless adding your 3rd question improves your grade - in which case it will be included) - IT'S RECOMMENDED YOU ATTEMPT ALL 3 HOWEVER YOU MAY ATTEMPT JUST 2 of QUESTIONS 4-6 IF YOU ARE TIME PRESSURED On January 1,2021, Rarita Corporation, which follows ASPE, issued a series of 400 convertible bonds, maturing in five years. The face amount of each bond was $1,000. Rarita received $436,000 for the bond issue. The bonds paid interest every December 31 at 6%; the market interest rate for bonds with a comparable level of risk was 5%. The bonds were convertible to common shares at a rate of ten common shares per bond. Rarita amortized bond premiums and discounts using the effective interest method, and the company's year-end was December 31. On January 1, 2021, 80 of the bonds were converted into common shares. On June 30, 2021, another 80 bonds were converted into common shares. The bondholders chose to forfeit the accrued interest on these bonds. On January 1, 2022, when the fair value of the bonds was $249,900 due to a decrease in market interest rates, a conversion inducement of $21/bond was offered to the remaining bondholders to convert their bonds to common shares. All the remaining 240 bonds were converted into common shares at this time. Required: Prepare all required journal entries to record the above transactions. (Hint: don't forget to accrue interest and amortize the premium on the bond at year-end, if needed) S D