Show Attempt History Current Attempt in Progress Your answer is partially correct. On January 1,2020, Sandhill Corporation, which follows ASPE, issued a series of 400 convertible bonds, maturing in five years. The face amount of each bond was $1,000. Sandhill received $439,000 for the bond issue. The bonds paid interest every December 31 at 5%; the market interest rate for bonds with a comparable level of risk was 4%. The bonds were convertible to common shares at a rate of ten common shares per bond. Sandhill amortized bond premiums and discounts using the effective interest method, and the company's year-end was December 31.1 On January 1, 2021, 80 of the bonds were converted into common shares. On June 30, 2021, another 80 bonds were converted into common shares. The bondholders chose to forfeit the accrued interest on these bonds. On January 1, 2022, when the fair value of the bonds was $250,700 due to a decrease in market interest rates, a conversion inducement of $20/bond was offered to the remaining bondholders to convert their bonds to common shares. All of the remaining 240 bonds were converted into common shares at this time. Prepare all required journal entries to record the above transactions. (Hint: don't forget to accrue interest and amortize the premium on the bond at year-end, if needed). (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to 0 decimal places eg. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation 20000 Debit 439000 Credit Date Account Titles and Explanation Debit Credit Jan 1, 2020 Cash 439000 Bonds Payable Contributed Surplus Conversion Rights Dec. 31, 2020 Interest Expense Bonds Payable 20890 417804 21196 20000 66821 Cash Jan 1, 2021 Bonds Payable Contributed Surplus-Conversion Rights 472 Common Shares Jun 30, 2021 Bonds Payable 86821 Contributed Surplus Conversion Rights 0 472 2 87293 ENG 18:35 Bonds Payabic 2021 Contributed Surplus Conversion Rights interest Expense Common Shares Dec. 31, 2021 Interest Expense 86821 472 421 10419 87714 22419 250043 Bonds Payable 12000 Cash Jan 1, 2022 Bonds Payable Loss on Redemption of Bonds 657 Contributed Surple Conversion Rights 1418 Retained Earrings 4143 Common Sares 259044 NO 18:35 IN Q02-2002 C