S.

COWELL CORPORATION

ISSUE
FV 2,000,000
n 20
i 5
pmt 60,000
PV 1,501,511

ISSUANCE
Cash
Bonds payable
Cont. Surplus-
Conversion rights

CONVERSION 40%
CONVER
2,000,000
n=8
i=5
pmt = 60000
1,741,471
0.40
696,588
Bonds payable
Cont. Surplus-
Conversion rights
Ordinary shares

RETIREMENT

n=4
Carrying value 1,858,162
Fair value 1,927,402
 Bonds payable
Cont. Surplus-
Conversion rights
Loss on redemption
Cont. Surplus or Retained Earnings
Cash

At Maturity-Conversion

Bond Payable
Contributed Surplus-
Conversion Right
Common Shares
2,000,000
1,501,511

498,489
696,588
199,395 498488*.4

895,983

0.50 929,081 i=5

0.50 963,701 i4

(34,620)
 929,081

249,245
34,620
Retained Earnings 172,946
1,040,000

200,000

49,849
249,849
FINAL CONVERSION
Bonds payable 200,000
Cont. Surplus 49,849
Conversion rights
Ordinary shares 249,849