Presented below are three independent situations:
(a) Ball Corporation purchased $380000 of its bonds on June 30 2017 at 102 and immediately retired them. The carrying value of the bonds on the retirement date was $371500. The bonds pay annual interest and the interest payment due on June 30 2017 has been made and recorded.
(b) Horton Inc. purchased $400000 of its bonds at 96 on June 30 2017 and immediately retired them. The carrying value of the bonds on the retirement date was $395000. The bonds pay annual interest and the interest payment due on June 30 2017 has been made and recorded.
(c) Valley Company has $80000 10% 12-year convertible bonds outstanding. These bonds were sold at face value and pay annual interest on December 31 of each year. The bonds are convertible into 40 shares of Valley $4 par value common stock for each $1000 par value bond. On December 31 2017 after the bond interest has been paid $30000 par value of bonds were converted. The market value of Valley's common stock was $38 per share on December 31 2017.
Instructions
For each of the independent situations prepare the journal entry to record the retirement or conversion of the bonds.

Question

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The Answer of Presented below are three independent situations:
(a) Ball Corporation purchased $380000 of its bonds on June 30 2017 at 102 and immediately retired them. The carrying value of the bonds on the retirement date was $371500. The bonds pay annual interest and the interest payment due on June 30 2017 has been made and recorded.
(b) Horton Inc. purchased $400000 of its bonds at 96 on June 30 2017 and immediately retired them. The carrying value of the bonds on the retirement date was $395000. The bonds pay annual interest and the interest payment due on June 30 2017 has been made and recorded.
(c) Valley Company has $80000 10% 12-year convertible bonds outstanding. These bonds were sold at face value and pay annual interest on December 31 of each year. The bonds are convertible into 40 shares of Valley $4 par value common stock for each $1000 par value bond. On December 31 2017 after the bond interest has been paid $30000 par value of bonds were converted. The market value of Valley's common stock was $38 per share on December 31 2017.
Instructions
For each of the independent situations prepare the journal entry to record the retirement or conversion of the bonds.

Presented Below Are Three Independent Situations