On January 1, 2020,SunlandCorporation issued $4,160,000of 10-year,9% convertible debentures at102. Interest is to be paid semiannually on June 30 and December 31. Each $1,000debenture can be converted into8shares ofSunlandCorporation $100par value common stock after December 31, 2021.

On January 1, 2022, $416,000of debentures are converted into common stock, which is then selling at $109. An additional $416,000of debentures are converted on March 31, 2022. The market price of the common stock is then $115. Accrued interest at March 31 will be paid on the next interest date.

Bond premium is amortized on a straight-line basis.

Make the necessary journal entries for:

(a)December 31, 2021.(c)March 31, 2022.(b)January 1, 2022.(d)June 30, 2022.

Record the conversions using the book value method.

(a) Dec. 31, 2021 (b) Jan. 1, 2022 (c) Mar. 31, 2022 (To record interest expense) Mar. 31, 2022 (To record the conversion) (d) Jun. 30, 2022