Please use the accounts provided on the list.

Problem 16-2 Sandhill Inc. issued $3,120,000 of convertible 10-year bonds on July 1, 2017. The bonds provide for 12% interest payable semiannually on January 1 and July 1, The discount in connection with the issue was $49,200, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 8 shares of Sandhill Inc.'s $100 par value common stock for each $1,000 of bonds. On August 1, 2018, $312,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) August 1, 2018. (Assume the book value method is used.) (b) August 31, 2018. (c) December 31, 2018, including closing entries for end-of-year. No. Date Account Titles and Explanation Debit Credit ) Aug. 1, 2018 To record the issuance of shares of common stock and the write-off of the discount on bonds payabla.) Aug. 1, 2018 To record payment in cash of interest accrued on bonds.) (b) Aug. 31, 2018 (To rcord mortization of discount on bonds) Aug. 31, 2018 To record accrual of interest on bonds.) (c) Dec. 31, 2018 To close expense account)