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On January 1st 2018 the Black Panther Company issued (sold) $800,000 10 year 6% bonds to yield 8%
These bonds pay interest on July 1 and January 1 each year.
Each of these $1000 par bonds could be converted into 20 shares of Black Panther common stock
a) make the journal entry Black Panther makes when they issue the bonds.
b) make the journal entry Black Panther makes when it makes the first interest payment on July 1 2018
c) make the adjusting journal entry Black Panther makes on December 31, 2018
d) make the journal entry Black Panther makes on January 1st 2019 when it makes its second interest payment
e) On January 2nd 2019 the bondholders converted their bonds into common stock of Black Panther
On January 2nd Black Panther's $5 par stock had a market value of $54.
Make the Black Panther journal entry when the bonds are converted into common stock
	Instead of converting the bonds; Black Panther retired the bonds on January 2nd 2019 by paying $785,000
	What gain or loss did Black Panther show on the retirement of the bonds?
	(make sure you tell me if it is a gain or loss)

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