On January 1, 2021, Gless Textiles issued $13 million of 10%, 10-year convertible bonds at 101. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of Gless's no par common stock. Bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). Century Services purchased 15% of the issue as an investment. Required: 1. Prepare the journal entries for the issuance of the bonds by Gless and the purchase of the bond investment by Century. 2. Prepare the journal entries for the June 30, 2025, interest payment by both Gless and Century assuming both use the straight-line method. 3. On July 1, 2026, when Gless's common stock had a market price of $33 per share, Century converted the bonds it held. Prepare the journal entries by both Gless and Century for the conversion of the bonds (book value method). Required 1 Required 2 Required 3 Prepare the journal entries for the June 30, 2025, interest payment by both Gless and Century assuming both use the straight-line method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) No Date General Journal Debit Credit 1 June 30, 2025 Interest expense 646,750 X Premium on bonds payable 3,250 Cash 650,000 2 June 30, 2025 Cash 97,500 Interest revenue OOC 97,012 Premium on investment in bonds 488 X Required 1 Required 2 Required 3 On July 1, 2026, when Gless's common stock had a market price of $33 per share, Century converted the bonds it Prepare the journal entries by both Gless and Century for the conversion of the bonds (book value method). (If no required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars.) S No Date General Journal Debit Credit 1 July 01, 2026 Convertible bonds payable 1,950,000 Premium on bonds payable Common stock 2 July 01, 2026 Investment in common stock Investment in convertible bonds Premium on investment in bonds