Garr Co. issued $4,088,000 of 12%, 5-year convertible bonds on December 1, 2017 for $4,105,272 plus accrued interest. The bonds were dated April 1, 2017 with interest payable April 1 and October 1. Bond premium is amortized each interest period on a straight-line basis. Garr Co. has a fiscal year end of September 30. On October 1, 2018, $2,044,000 of these bonds were converted into 29,000 shares of $15 par common stock. Accrued interest was paid in cash at the time of conversion.

a- Prepare the entry to record the interest expense at April 1, 2018. Assume that interest payable was credited when the bonds were issued.

b- Prepare the entry to record the conversion on October 1, 2018. Assume that the entry to record amortization of the bond premium and interest payment has been made.