Sheridan Company has $3920000 of 9% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value common stock. The bonds pay interest on January 31 and July 31. On July 31, halve common stock, he bonds par interests on January 11 and duly hon 2018, the holders of $1260000 bonds exercised the conversion privilege. On that date the market price of the bonds was 105 and the market price of the common stock was $35. The total unamortized bond premium at the date of conversion was $283000. Sheridan should record, as a result of this conversion, a O credit of $90560 to Premium on Bonds Payable. credit of $190960 to Paid-in Capital in Excess of Par. O loss of $12600. O credit of $216560 to Paid-in Capital in Excess of Par. Sunland Company issued $6120000 of 10%, ten-year convertible bonds on July 1, 2017 at 96.1 plus accrued interest. The bonds were dated April 1, 2017 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2018, $1224000 of these bonds were converted into 500 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. If "interest payable" were credited when the bonds were issued, what should be the amount of the debit to "interest expense" on October 1, 2017? $159120. $153000. $306000. $146880