Volker Inc. issued convertible bonds on July 1, 2020. Additional information on these bonds follows: Par value of the bonds $2,500,000 Term of bonds in years 10 Rate of interest on bonds, payable semiannually on January 1 and July 1 Discount in connection with the bond issuance 129 $ 54,000 Amortization is monthly on a straight-line basis. Convertible terms after one year Number of common shares to be converted into for each bond Par value of each bond Par value of common stock per share Bonds converted into common stock on August 1, 2021 8 $ 1,000 $ 100 $ 250,000 5 Interest has been accrued monthly and paid as due. At the time of conversion any accrued 6 interest on bonds being converted is paid in cash. 17 18 Note: Due to more precise rounding in Excel, amounts may differ from the solutions 19 manual 20 21 Instructions: 22 Prepare the journal entries to record the conversion, amortization, and interest in connection 23 with the bonds as of the following dates. 24 25 (a) August 1, 2021. (Assume the book value method is used) 26