LMN Company reported the following amounts on its balance sheet at July 31, 2021:

Liabilities

Convertible bonds payable, $10,000,000 face value 8%, due July 31, 2022

The PV of the bonds is 9,818,182.

Equity

Contributed surpluscommon stock conversion rights 300,000

Preferred shares, no par, 3,000,000 shares authorized, 10,000 outstanding 1,100,000

Common shares, no par, 1,000,000 shares authorized, 180,000 outstanding 4,500,000

• The bonds pay interest each July 31. Each $1,000 bond is convertible into 5 common shares. The bonds were originally issued to yield 10%. On July 31, 2022, all the bonds were converted after the final interest payment was made.
• 2. No other share or bond transactions occurred during the year.

1. Prepare the journal entry to record the bond interest payment on July 31, 2022.

Date	Account /Explanation	Debit	Credit

2. Calculate the total number of common shares outstanding after the bonds' conversion on July 31, 2022.

3. Prepare the journal entry to record the bond conversion.

Date	Account /Explanation	Debit	Credit