On January 2, 20x5, a Trump Inc. issues convertible bonds maturing on December 31,

20x14. On the maturity date, these bonds are mandatorily convertible into common

shares. The bonds have a face value of $1,000,000 and pay a coupon of 4% on June 30

and Dec 31. The bonds were issued to yield 4.6%. The cash proceeds of $991,500

received on the bond issue were credited to the Convertible Bonds Payable Account and

the cash coupons paid were debited to Interest expense.

Required Prepare the adjusting journal entries required at December 31, 20x5.