On January 1, 2017, Desert Windows Corporation issued $1,000,000 of 15-year, 12% convertible debentures at 110. Interest is to be paid semiannually on June 30 and December 31. Each $1,000 debenture can be converted into four shares of Desert Windows Corporation $5 par value common stock after December 31, 2018.

On January 1, 2019, $400,000 of the debentures is converted into common stock, which is then selling at $300. An additional $400,000 of the debentures is converted on May 31, 2019. The market price of the common stock is then $310. Accrued interest at May 31 will be paid on the next interest date. Bond premium is amortized on a straight-line basis.

Required: Make the necessary journal entries for:

(a) December 31, 2018.

(b) January 1, 2019.

(c) May 31, 2019.

(d) June 30, 2019.

Record the conversions using the book value method.