View Policies Current Attempt in Progress On January 1, 2020, Novak Corporation issued a series of 100 convertible bonds, maturing in 5 years. The face amount of each bond was $500. Novak received $51,100 for the bond issue. The bonds paid interest every December 31 at 7%; the market interest rate for bonds with a comparable level of risk was 6.80%. The bonds were convertible to common shares at a rate of 8 common shares per bond. Novak amortized bond premiums and discounts using the effective interest method, and the company's year-end was December 31. On January 1, 2021, 20 of the bonds were converted into common shares. On June 30, 2021, another 20 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 $30,570 due to a decrease in market interest rates, a conversion inducement of $26/bond was offered to the remaining bondholders to convert their bonds to common shares. All of the remaining 60 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). (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date Jan. 1, 2020 Cash 51,100 Bonds Payable Contributed Surplus - Conversion Rights Dec. 31, 2020 Jan. 1, 2021 Jun. 30, 2021 Dec. 31, 2021 Jan. 1, 2022 View Policies Current Attempt in Progress On January 1, 2020, Novak Corporation issued a series of 100 convertible bonds, maturing in 5 years. The face amount of each bond was $500. Novak received $51,100 for the bond issue. The bonds paid interest every December 31 at 7%; the market interest rate for bonds with a comparable level of risk was 6.80%. The bonds were convertible to common shares at a rate of 8 common shares per bond. Novak amortized bond premiums and discounts using the effective interest method, and the company's year-end was December 31. On January 1, 2021, 20 of the bonds were converted into common shares. On June 30, 2021, another 20 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 $30,570 due to a decrease in market interest rates, a conversion inducement of $26/bond was offered to the remaining bondholders to convert their bonds to common shares. All of the remaining 60 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). (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date Jan. 1, 2020 Cash 51,100 Bonds Payable Contributed Surplus - Conversion Rights Dec. 31, 2020 Jan. 1, 2021 Jun. 30, 2021 Dec. 31, 2021 Jan. 1, 2022