On January 1, 2012, Gless Textiles issued $12 million of 9%, 10-year convertible bonds at 101 . The bonds interest on June 30 and December 31. Each $1,000 bond is convertible into 40 ordinary shares of 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 Credit January 1, 2012 Gless (Issuer) 12,120,000 Cash O Discount on bonds payable 20,000 12,000,000 Bonds payable 240,000 Equity options options O 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 Jounal Debit Credit Gless (Issuer) June 30, 2016 545,020 Interest expense Discount on bond payable Cash 5,020 540,000 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 Debit July 1, 2016 Gless (Issuer) 1,200,000 Bonds payable 24,000 Equity options Discount on bonds payable Ordinary shares 8,197 1,215,803 On January 1, 2012, Gless Textiles issued $12 million of 9%, 10-year convertible bonds at 101 . The bonds interest on June 30 and December 31. Each $1,000 bond is convertible into 40 ordinary shares of 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 Credit January 1, 2012 Gless (Issuer) 12,120,000 Cash O Discount on bonds payable 20,000 12,000,000 Bonds payable 240,000 Equity options options O 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 Jounal Debit Credit Gless (Issuer) June 30, 2016 545,020 Interest expense Discount on bond payable Cash 5,020 540,000 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 Debit July 1, 2016 Gless (Issuer) 1,200,000 Bonds payable 24,000 Equity options Discount on bonds payable Ordinary shares 8,197 1,215,803