On January 1, 2020,IndigoCorporation issued a series of100convertible bonds, maturing in5years. The face amount of each bond was $500.Indigoreceived $50,800for the bond issue. The bonds paid interest every December 31 at4%; the market interest rate for bonds with a comparable level of risk was3.80%. The bonds were convertible to common shares at a rate of8common shares per bond.Indigoamortized bond premiums and discounts using the effective interest method, and the company's year-end was December 31.

On January 1, 2021,20of the bonds were converted into common shares. On June 30, 2021, another20bonds 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 $30,380due to a decrease in market interest rates, a conversion inducement of $27/bond was offered to the remaining bondholders to convert their bonds to common shares. All of the remaining60bonds were converted into common shares at this time.

Prepare all required journal entries to record the above transactions (Hint:don't forget to accrue interest and amortize the premium on the bond at year-end).(Round intermediate 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.)