Pharoah Inc. issued $$15,900,000$ of $12\%,40-$year convertible bonds on November $1,2025,$ at $96$ plus accrued interest. The bonds were dated July $1,2025,$ with interest payable January $1$ and July $1.$ Bond discount $($premium$)$ is amortized semiannually on a straight$-$line basis.

On July $1,2026,$ one$-$half of these bonds were converted into $55,000$ shares of $$1$ par value common stock. Accrued interest was paid in cash at the time of conversion.

$($a$)$ Prepare the entry to record the interest expense at December $31,2025.$ Assume that accrued interest payable was credited when the bonds were issued. Credit Interest Payable for the full amount due; debit Interest Payable for the amount recognized at insurance. $($Round to nearest dollar.$)$

$($b$)$ Prepare the entry to record the conversion on July $1,2026.($Book value method is used.$)$ Assume that the entry to record amortization of the bond discount and interest payment has been made.