Q On January 1, 2020, Crane Corporation issued $8 million of 10-year, 7% convertible debentures at 106. Investment bankers believe that the debenture would have sold at 103 without the conversion privilege. Interest is to be paid semi-annually on June 30 and December 31. Each $1,000 debenture can be converted into 5 common shares of Crane after December 31, 2021. On January 1, 2022, $496,000 of debentures are converted into common shares, and on March 31, 2022, an additional $496,000 of debentures are converted into common shares. Fair value of Crane's common shares is $106 and $111 per share on January 1, 2022, and March 31, 2022, respectively. Accrued interest at March 31 will be paid on the next interest date. Bond premium is amortized on a straight-line basis. Crane follows ASPE. (a) Make the necessary journal entries using the book value method. (Hint: March 31, 2022: Accrue interest on bonds to be converted as a first entry.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round intermediate percentage calculations to 3 decimal places, e.g. 1.246% and final answers to O decimal places, e.g. 5,275.) Date December 31, Account Titles and Explanation Debit Credit Ad Q Ac Qu Acc Qu Acc Qu Acco Qu Acco 2021 January 1, 2022 Que Acco Que Accom View Accom