On January 1, 2020, Carla Vista Corporation issued $4 million of 10year, 9% convertible debentures at 104. Investment bankers believe that the debenture would have sold at 102 without the conversion privilege. Interest is to be paid semi-annually on June 30 and December 31. Each $1,000 debenture can be converted into 4 common shares of Carla Vista after December 31, 2021. On January 1, 2022, $272,000 of debentures are converted into common shares, and on March 31, 2022, an additional $272,000 of debentures are converted into common shares. Fair value of Carla Vista's common shares is $111 and $116 per share on January 1, 2022, and March 31, 2022, respectively. Accrued interest at March 31 will be paid on the next interest date. Bond premium is amortized on a straight-line basis. Carla Vista follows ASPE.

Make the necessary journal entries using the book value method. (Hint: March 31, 2022: Accrue interest on bonds to be converted as a first entry.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round intermediate percentage calculations to 3 decimal places, e.g. 1.246% and final answers to 0 decimal places, e.g. 5,275.)