The December 31, 2022, balance sheet of Hodes Corp. is as follows: 5% (semi-annual coupon rate) callable, convertible bonds payable (semi-annual interest dates of June 30 and December 31; callable at 101; convertible into 6 shares of $25 par value common stock per $1000 bond principal; 500 bonds; maturity date December 31, 2026) .. $511,237 On April 5, 2023, Hodes Corp. announced their intention to call all of the bonds as of June 30 for the principal plus interest through June 30. At June 30, all bondholders had exercised their conversion to common stock as of the interest payment date. Consequently, on June 30, Hodes Corp. paid the semi-annual interest and issued shares of common stock for the bonds. Celia Hodes Corp. uses effective interest amortization.

REQUIRED: a) Prepare the entries to record the interest expense and conversion on June 30, 2023. b) What if, instead of being converted by the bondholders, the company called the bonds. What entry would the company make?