Correct or provide the journal entries and provide a reason behind it:

In addition to raising capital with equity, the company also sold bonds on October 1, 2018 to raise money. The 5-year bonds have a face or par value of $8,300,000 and mature on September 30, 2023. The bonds pay semi-annual interest payments on March 31 and September 30 at a stated annual rate of 8% but the market interest rate was only 8% when the company issued the bonds. The major investor in these bonds was not satisfied with these terms so the company also agreed to make the bonds convertible at the investors option into 8,200,000 common shares (every $2,000 bond is convertible into 240 common shares).

Consequently, the bonds sold for more than face value and on the sale date, the accountant recorded:

Dr. Cash 11,237,523

Cr. Bonds payable 11,237,523

On December 31, 2018 a bondholder converted one fifth of the bonds and received accrued interest to date but only on the converted bonds. At that time, the accountant recorded:

Dr. Interest expense 45,000

Dr. Bond payable 3,200,000

Cr. Cash 45,000

Cr. Common shares 3,200,000