On January $1,2024,$ Gless Textiles issued $$20$ million of $9\%,20-$year convertible bonds at $101.$

The bonds pay interest on June $30$ and December $31.$

Each $$1,000$ bond is convertible into $40$ shares of Gless's no par common stock.

Bonds that are similar in all respects, except that they are nonconvertible, currently are selling at $99($that is$,99\%$ of face amount$).$

Century Services purchased $10\%$ of the issue as an investment.

Required:

Prepare the journal entries for the issuance of the bonds by Gless and the purchase of the bond investment by Century.

Prepare the Journal entries for the June $30,2028,$ Interest payment by both Gless and Century assuming both use the straightline method.

On July $1,2029,$ when Gless's common stock had a market price of $$33$ per share, Century converted the bonds it held. Prepare the journal entries by both Gless and Century for the conversion of the bonds $($book value method$).$

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