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E16.1 (LO 1, 2) Excel (Issuance and Conversion of Bonds) For each of the unrelated transac- tions described below, present th
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Answer #1

Part 1

No.

Account titles and explanation

Debit

Credit

1

Cash (20000000*99%)

19800000

Discount on bonds payable

200000

Bonds payable

20000000

Part 2

No.

Account titles and explanation

Debit

Credit

2

Cash (20000000*98%)

19600000

Discount on bonds payable

1200000

Bonds payable

20000000

Additonal Paid in Capital-Stock Warrant (20000000/100*4)

800000

Part 3

No.

Account titles and explanation

Debit

Credit

3

Bonds payable

10000000

Debt Conversion Expense

75000

Discount on bonds payable

55000

Common stock

1000000

Additonal Paid in Capital-common stock

8945000

cash

75000

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