1. What is the entry to record the interest payment on 4/1/10 assuming that interest payable was credited when the bonds were issued. (Need to form an amortization table for the premium over 52 months since the bonds were issued after the date of 4/1/09)
2. What is the entry for the 10/1/10 transaction.

Scotch Co. issued $5,000,000 of 7.5%, 5-year convertible bonds on 12/1/09 for $5,025,480 plus accrued interest of $62,500 (credited to interest payable). The bonds were dated 4/1/09 with interest payable on 4/1 and 10/1. Bond premium is amortized each interest period on a straight-line basis. Each $1,000 bond is convertible into 14 shares of $15 par value common stock. On 10/1/10 bonds with a face value of $2,500,000 were converted into common stock.