Problem 16-2 Pharoah Inc. issued $2,880,000 o convertible 10-year bonds on July 1 2017. The bonds provide or 12% nterest payable sem annually on an an 1 and J 1 T e iscount connection with the issue was $50,400, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 8 shares of Pharoah Inc.'s $100 par value common stock for each $1,000 of bonds. On August 1, 2018, $288,000 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 0 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 (a) Aug. 1, 2018 Bonds Payable Discount on Bonds Payable Common Stock Paid-in Capital in Excess of Par - Common Stock (To record the issuance of shares of common stock and the write-off of the discount on bonds payable.) Aug. 1, 2018 Interest Payable