On January 1, 2020, Marigold Corporation issued a series of 500 convertible bonds, maturing in five years. The face amount of each bond was $1,000. Marigold received $528,000 for the bond issue. The bonds paid interest every December 31 at 5%; the market interest rate for bonds with a comparable level of risk was 4%. The bonds were convertible to common shares at a rate of ten common shares per bond. Marigold amortized bond premiums and discounts using the effective interest method, and the companys year-end was December 31. On January 1, 2021, 100 of the bonds were converted into common shares. On June 30, 2021, another 100 bonds were converted into common shares. The bondholders chose to forfeit the accrued interest on these bonds. On January 1, 2022, when the fair value of the bonds was $309,000 due to a decrease in market interest rates, a conversion inducement of $21/bond was offered to the remaining bondholders to convert their bonds to common shares. All of the remaining 300 bonds were converted into common shares at this time. Prepare all required journal entries to record the above transactions. (Hint: dont forget to accrue interest and amortize the premium on the bond at year-end, if needed). (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date Account Titles and Explanation Debit Credit Jan. 1, 2020 Cash 538000 Bonds Payable 522260 Contributed Surplus - Conversion Rights 15740 Dec. 31, 2020 Interest Expense 20890 Bonds Payable 890 Cash 20000 Jan. 1, 2021 Bonds Payable 104274 Contributed Surplus - Conversion Rights 3148 Common Shares 107422 Contributed Surplus - Conversion Rights Jun. 30, 2021 Bonds Payable 104274 Contributed Surplus - Conversion Rights 3148 Common Shares Dec. 31, 2021 Interest Expense Bonds Payable Cash Jan. 1, 2022 Bonds Payable 300000 Contributed Surplus - Conversion Rights Retained Earnings Loss on Redemption of Bonds Common Shares Cash 6300 Date Account Titles and Explanation Debit Credit Jan. 1, 2020 Cash 538000 Bonds Payable 522260 Contributed Surplus - Conversion Rights 15740 Dec. 31, 2020 Interest Expense 20890 Bonds Payable 890 Cash 20000 Jan. 1, 2021 Bonds Payable 104274 Contributed Surplus - Conversion Rights 3148 Common Shares 107422 Contributed Surplus - Conversion Rights Jun. 30, 2021 Bonds Payable 104274 Contributed Surplus - Conversion Rights 3148 Common Shares Dec. 31, 2021 Interest Expense Bonds Payable Cash Jan. 1, 2022 Bonds Payable 300000 Contributed Surplus - Conversion Rights Retained Earnings Loss on Redemption of Bonds Common Shares Cash 6300