On January 1, 2023, DMW Corporation issued a series of 100 convertible bonds, maturing in 5 years. The face amount of each bond was $500. DMW received $51,500 for the bond issue. The bonds paid interest every December 31 at 8%; the market interest rate for bonds with a comparable level of risk was 8.50%. The bonds were convertible to common shares at a rate of 12 common shares per bond. DMW amortized bond premiums and discounts using the effective interest method, and the company's year-end was December 31. DMW follows ASPE. On January 1, 2024, 20 of the bonds were converted into common shares. On June 30, 2024, another 20 bonds were converted into common shares. The bondholders chose to forfeit the accrued interest on these bonds. On January 1, 2025, when the fair value of the bonds was $30,810 due 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 remaining 60 bonds were converted into common shares at this time. a. Prepare the journal entry at January 1, 2023.