Use the following information for Problems #$1-3$:

Mandy Mfg$.$ Inc. issued $$6,800,000$ of five year $8\%$ term bonds on January $1,2012$ with interest

payable twice annually $($each July $1$ and January $1).$ The market rate of interest for such bonds is

$6\%.$

$1]$ Calculate the bond proceeds $($i$.$e$.$ present value of the bonds$)$

$2]$ Record the journal entry on Mandy's books for issuance of the bonds:

$3]$ Record the journal on Mandy's books for accrual of interest on June $30$th

Problem #$4$: Accounting for Stock Appreciation Rights $($SAR$\text{'}$s$)$

Shasta Industries, Inc. establishes a share$-$appreciation rights plan on January $1,2017.$ The plan entitles

executives to receive cash at the date of exercise for the difference between the market price of the

stock and the pre$-$established price of $$30$ on $10,000$ SARs. The service period runs for two years $(2017-$

$.$

The value of the SAR's at the end of each of year $(2017-2019)$ are as follows:

Requirement: Record the journal entries for the three$-$year period $(2017-2019)$ to record compensation

expense relative to the SAR's $($Note: Three Journal entries required$)$

Problem #$5$: Bond Conversion Journal Entry $|$

Hotwire Corporation has the following bond outstanding

$3,500,$$$1,000$ bonds, each convertible into $50$ shares of $$10$ par value common stock.

The bonds are converted on December $31,2019,$

The unamortized discount is $$75,000$ and the market price of the stock is $$23$ per share.

Required: record the Journal entry at conversion of the bonds $($use the grid$)$:

Problem #$6$: Bond Conversion Journal Entry $($Partial Conversion of Bonds$)$

Coffee Brew Company has the following bond outstanding:

$$5,500,000$ of $9\%$ convertible bonds outstanding, each $$1,000$ bond is convertible into $25$ shares of $$32$

par value common stock. The total unamortized bond premium at the date of conversion was $$350,000.$

On July $31,2019$ the holders of $$1,650,000$ bonds exercised the conversion privilege. On that date the

market price of the bonds was $103$ and the market price of the common stock was $$35.$ The bonds pay

interest on January $31$ and July $31.$

Required: Record the journal entry for the conversion: