Kingbird Inc issusd $$4,950,000$ of convertible $5$ year bonds on July $1\mathrm{.}2025.$ The bonds provide for $6$$ interest payabla samiannually

on January $1$ and July $1.$ The discount in connection with tha issua was $$102,000,$ which is being amortized monthly on a stra ghe$-$line

basi.

The bonds are convertible after one ycar into $15$ shares of Kingbird Inci: $$1$ par value common stock for cach $$1,000$ of bonde.

On October $1\mathrm{.}2026.$$$594,000$ of bonds wereturned in for conversion into common stodk Interest has besn ascrusd monthly and

paid as due. At the time of convarsion, any accruad irterest on bonds baing convertad is paid in cash.

Prepare the journal entries to record the converzion, amortization, and intarset in connsction with the bonds as of tha following dates.

$($Credit account titles are autamatically indented when amount is entered. Do not indent manually if no entry is required, select $"$No Entry" for

the account tities and enter O for the amounts. Vist all debit entries before credit entries$)$

$($a$)$ October $1,2026.$ Wssume the book value method is used$)$

$($b$)$ Octobse $31,2026.$

$($c$)$ December $31,2026,$ including closing entries for end$-$ofyear.

o$.$ Date Account Titles and Explanation

Credit

$($To record ccinverion ol bands to common stodk$)$

Oct

$1.$

$2026,$

$,$

$($To record parment of interest due on cormerted

bonds$)$

Oct

$2026$

$$

$($To record amortization of discount on bonds$)$

Oct