I ? Your answer is partially correct. Sarasota Inc. issued $13,800,000 of 12%, 40-year convertible bonds on November 1, 2020, at 96 plus accrued interest. The bonds were dated July 1, 2020, with interest payable January 1 and July 1. Bond discount (premium) is amortized semiannually on a straight- line basis. On July 1, 2021, one-half of these bonds were converted into 58,000 shares of $1 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) Prepare the entry to record the interest expense at December 31, 2020. Assume that accrued interest payable was credited when the bonds were issued. Credit Interest Payable for the full amount due; debit Interest Payable for the amount recognized at issuance. (Round to nearest dollar.) (b) Prepare the entry to record the conversion on July 1, 2021. (Book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment has been made. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,125.) No. Account Titles and Explanation Debit Credit (a) Interest Payable 556619 Interest Expense 276000 Discount on Bonds Payable Cash Bonds Payable 2000000 (b) 4619 828000 264452 58000 1677548