On January 1, 2020, Gottlieb Corporation issued $3,860,000 of 10-year, 8% convertible debentures at 104. Interest is to be paid semiannually on June 30 and December 31. Each $1,000 debenture can be...

On January 1, 2020, Gottlieb Corporation issued $3,860,000 of 10-year, 8% convertible debentures at 104. Interest is to be paid semiannually on June 30 and December 31. Each $1,000 debenture can be converted into eight shares of Gottlieb Corporation $102 par value common stock after December 31, 2021.

On January 1, 2022, $386000 of debentures are converted into common stock, which is then selling at $113. An additional $386,000 of debentures are converted on March 31, 2022. The market price of the common stock is then $119. Accrued interest at March 31 will be paid on the next interest date.

Bond premium is amortized on a straight-line basis.

Instructions

Make the necessary journal entries for:

a1)january 1, 2020

a.   December 31, 2021.

b.   January 1, 2022.

c.   March 31, 2022.

d.   June 30, 2022.

Record the conversions using the book value method.