On January 1, 2012, Gless Textiles issued $12 million of 9%, 10-year convertible bonds at 101. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 ordinary shares of Gless. The market price for nonconvertible 10-year bonds of similar risk was $11,880,000. The effective interest rate on the bond without a conversion option was 9.157% Required: 1. Prepare the journal entries for the issuance of the bonds by Gless. (Enter your answers in dollars not in millions.) General Journal Debit January 1, 2012 Gless (Issue Cash 12120000 Discount on bonds payable 120,000 Bonds payable Equity options 12,000,000 240,000 2. Prepare the journal entries for the June 30, 2016, interest payment by Gless using the effective interest method. (Enter your answers in dollars not in millions.) General Journal Gless (Issuer) June 30, 2016 Discount on bond payable Interest expense Cash 540000 3. On July 1, 2016, when Gless's shares had a market price of $33 per share, 10% of bondholders converted the bonds they held. Prepare the journal entries by Gless for the conversion of the bonds. (Enter your answers in dollars not in millions.) General Journal July 1, 2016 Gless (Issue Bonds payable Premium on bond investment Click to select) (Click to select)