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On May 1,2024, Dj Vu Company issued 8% bonds that have a total face value...

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Accounting

On May 1,2024, Dj Vu Company issued 8% bonds that have a total face value of
$210,000(each bond has a face value of $1,000). The bonds sold for $161,826 and
mature in 10 years. The effective interest rate for the bonds was 12% on 51?24. Interest
is paid semiannually on October 31 and April 30. Each bond can be converted into 10
shares of Dj Vu Company's $1 par value common stock. The market value per share of
Dj Vu's common stock was $8 on 1231?24 and $17 on 111?25. The market rate of
interest on the bonds fell to 9% on 81?24.
a. Fill in all of the blanks in the amortization table.
b. What is the change in total liabilities resulting from the 430?25 joumal entry to
record interest expense? Provide a dollar amount and circle increase or decrease.
9
Increase
Decrease
c. What would the increase in Dj Vu Company's common stock and paid-in capital
accounts be if half of the bonds were converted into common stock on November 1,
2025?
Common Stock $
Paid-in Capital &
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