On January $1,20$X$0$ Ridham Bhalla Limited issued $$15,000,000$ of $10-$year $10\mathrm{.}0\%$ debenture at

$101.$ Investment bankers believe that the debentures would have sold at $98$ without the conversion privilege. Interest is to be paid semiannually on June $30$th and December $31.$ Each $$1,000$ debenture can be converted into ten of Ridham Bhalla Limited's no$-$par common shares after December $31,20$X$1.$

On January $1,20$X$3$ $$3,000,000$ of the debentures are converted into common shares, which were selling at $$88\mathrm{.}00.$ An additional $$6,000,000$ of the debentures are converted on March $31,20$X$3.$

The market price of the common shares is then $$96\mathrm{.}00.$ Accrued interest at March will be paid when the bond is converted. The bond premium is to be amortized on a straight$-$line basis. Ridham Bhalla Limited Shows Both the Equity and Liability Components.

$-1.$ Prepare the journal entries on January $1,20$X$0.$

$2.$ Prepare the journal entries on December $31,20$X$1.$

$3.$ Prepare the journal entries on January $1,20$X$3,$ assuming the cost basis.

$4.$ Prepare the journal entries on March $31,20$X$3,$ assuming the cost basis.

$5.$ Prepare the journal entries on June $30,20$X$3.$