On January 1, 2020, Ivanhoe Corporation issued $4 million of 10year, 9% convertible debentures at 108. Investment bankers believe that the debenture would have sold at 104 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 Ivanhoe after December 31, 2021. On January 1, 2022, $220,000 of debentures are converted into common shares, and on March 31, 2022, an additional $220,000 of debentures are converted into common shares. Fair value of Ivanhoe'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. Ivanhoe follows ASPE.

(a) 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.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2021
January 1, 2022
March 31, 2022
	(To accrue interest.)
March 31, 2022
	(To record conversion.)
June 30, 2022