E16.5B (LO 1) (Conversion of Bonds) The December 31, 2020, balance sheet of West Word Corp. is as follows: 12% callable, convertible bonds payable (semiannual interest dates June 30 and December 31; convertible into 15 shares of $10 par value common stock per $1,000 of bond principal; maturity date June 30, 2034) Premium on bonds payable $2,500,000 110,050 $2,610,050 On April 15, 2021, West Word Corp. called all of the bonds as of May 31, 2021 for the principal plus interest through May 31. By May 31, one-half of the bondholders had exercised their conversion to common stock as of the interest payment date. Conse- quently, on May 31, West Word Corp. paid the interest due to all bondholders, issued shares of common stock for one-half of the bonds, and paid cash to retire the remainder of the bonds. The premium is amortized on a straight-line basis and West Word uses the book value method. 2 Chapter 16 Dilutive Securities and Earnings per Share Instructions Prepare the entry(ies) to record the interest expense, conversion, and call on May 31, 2021. (Round to the nearest dollar.) 1