On january 1, 2020, whispering corporation issued $3,740,000 of 10-year, 8% convertible debentures at 102. interest is to be paid semiannually on june 30 and december 31. each $1,000 debenture can be converted into 8 shares of whispering corporation $100 par value common stock after december 31, 2021. on january 1, 2022, $374,000 of debentures are converted into common stock, which is then selling at $111. an additional $374,000 of debentures are converted on march 31, 2022. the market price of the common stock is then $116. accrued interest at march 31 will be paid on the next interest date. bond premium is amortized on a straight-line basis. make the necessary journal entries for:

(a) december 31, 2021.
(c) march 31, 2022.
(b) january 1, 2022.
(d) june 30, 2022.

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.