Alpha sold $$500,000$ of $9\%,10-$year convertible bonds on January $1,2020$ for proceeds of $$480,000.$ The market was demanding a $10\%$ yield for similar bonds that did not have a conversion privilege.

The bonds are dated January $1,2020$ and pay interest annually on December $31.$ Alpha uses the effective interest method to amortize discounts or premiums, and the carrying value method for conversion. At the investor's option, each $$1,000$ bond is convertible into $25$ common shares.

On January $1,2022,70\%$ of the bonds were converted. At that time, the common shares were trading at

$$52.$

Required: Prepare journal entries for January $1,2020$; December $31,2020$; December $31,2021$; and

January $1,2022.$

please only answer if you know the correct answer. Question based on Intermediate financial accounting.