On January $1,2025,$ Vaughn Corporation issued $$4,180,000$ of $10-$year, $8\%$ convertible debentures at $102.$ Interest is to be paid semiannually on June $30$ and December $31.$ Each $$1,000$ debenture can be converted into $8$ shares of Vaughn Corporation $$102$ par value common stock after December $31,2026.$

On January $1,2027,$$$418,000$ of debentures are converted into common stock, which is then selling at $$111.$ An additional $$418,000$ of debentures are converted on March $31,2027.$ The market price of the common stock is then $$116.$ Accrued interest at March $31$ will be paid on the next interest date.

Bond premium is amortized on a straight$-$line basis.

Make the necessary journal entries for:

a$.$ December $31,2026.$

c$.$ March $31,2027.$

b$.$ January $1,2027.$

d$.$ June $30,2027.$

Record the conversions using the book value method. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Round answers to $0$ decimal places, e$.$g$.5,275.)$

No$.$

Date

Account Titles and Explanation

Debit

Credit

a$.$ Dec. $31,$