Return to question UT 2.22 points On January 1, 2021, Gless Textiles issued $19 million of 8%, 10-year convertible bonds at 101. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of Gless's no par common stock. Bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). Century Services purchased 15% of the issue as an investment Required: 1. Prepare the journal entries for the issuance of the bonds by Gless and the purchase of the bond investment by Century. 2. Prepare the journal entries for the June 30, 2025, interest payment by both Gless and Century assuming both use the straight-line method. 3. On July 1, 2026, when Gless's common stock had a market price of $33 per share, Century converted the bonds it held. Prepare the journal entries by both Gless and Century for the conversion of the bonds (book value method). points Required 1 Required 2 Required 3 Prepare the journal entries for the issuance of the bonds by Gless and the purchase of the bond investment by Century. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) No Date Debit Credit 1 General Journal January 01, 2021 Cash Convertible bonds payable Premium on bonds payable 2 January 01, 2021 Convertible bonds payable Common stock Convertible bonds payable Investment in common stock Cash x points Required 1 Required 2 Required 3 Prepare the journal entries for the June 30, 2025, interest payment by both Gless and Century assuming both use the straight-line method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) No Date General Journal Debit Credit 1 June 30, 2025 Interest receivable x Cash 2 June 30, 2025 Cash Interest revenue 2.22 points Required 1 Required 2 Required 3 On July 1, 2026, when Gless's common stock had a market price of $33 per share, Century converted the bonds it held. Prepare the journal entries by both Gless and Century for the conversion of the bonds (book value method). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) - Show less A No Date General Journal Debit Credit 1 July 01, 2026 Convertible bonds payable Common stock Convertible bonds payable x X 2 July 01, 2026 No journal entry required X