Current Attempt in Progress

Monty Inc. issued $5,850,000 of convertible 5-year bonds on July 1, 2020. The bonds provide for 6% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $105,000, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 15 shares of Monty Inc.s $1 par value common stock for each $1,000 of bonds. On October 1, 2021, $702,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

(a)		October 1, 2021. (Assume the book value method is used.)
(b)		October 31, 2021.
(c)		December 31, 2021, including closing entries for end-of-year.

No.	Date	Account Titles and Explanation	Debit	Credit
(a)	Oct. 1, 2021	enter an account title to record the issuance of shares of common stock and the write-off of the discount on bonds payable	enter a debit amount	enter a credit amount
		enter an account title to record the issuance of shares of common stock and the write-off of the discount on bonds payable	enter a debit amount	enter a credit amount
		enter an account title to record the issuance of shares of common stock and the write-off of the discount on bonds payable	enter a debit amount	enter a credit amount
		enter an account title to record the issuance of shares of common stock and the write-off of the discount on bonds payable	enter a debit amount	enter a credit amount
		(To record conversion of bonds to common stock.)
	Oct. 1, 2021	enter an account title to record the record payment in cash of interest accrued on bonds	enter a debit amount	enter a credit amount
		enter an account title to record the record payment in cash of interest accrued on bonds	enter a debit amount	enter a credit amount
		(To record payment of interest due on converted bonds.)
(b)	Oct. 31, 2021	enter an account title to record the record amortization of discount on bonds	enter a debit amount	enter a credit amount
		enter an account title to record the record amortization of discount on bonds	enter a debit amount	enter a credit amount
		(To record amortization of discount on bonds.)
	Oct. 31, 2021	enter an account title to record the record accrual of interest on bonds	enter a debit amount	enter a credit amount
		enter an account title to record the record accrual of interest on bonds	enter a debit amount	enter a credit amount
		(To record accrual of interest payable on bonds.)
(c)	Dec. 31, 2021	enter an account title to record the record amortization of discount on bonds	enter a debit amount	enter a credit amount
		enter an account title to record the record amortization of discount on bonds	enter a debit amount	enter a credit amount
		(To record amortization of discount on bonds.)
	Dec. 31, 2021	enter an account title to record the record accrual of interest on bonds	enter a debit amount	enter a credit amount
		enter an account title to record the record accrual of interest on bonds	enter a debit amount	enter a credit amount
		(To record accrual of interest payable on bonds.)
	Dec. 31, 2021	enter an account title to record the close expense account	enter a debit amount	enter a credit amount
		enter an account title to record the close expense account	enter a debit amount	enter a credit amount
		(To close expense account)