E$16-6($Conversion of Bonds$)$ On January $1,2011,$ Trillini Corp. issued $$3,000,000$ of $10-$years, $8\%$ convertible debentures at $102.$ Interest to be paid semiannually on June $30$ and December $31.$ Each $$1,000$ debenture can be converted into eight shares of Trillini Corp. $$100$ par value common stock after December $31,2012.$

On January $1,2013,$ $$600,000$ of debentures are converted into common stock, which is the selling at $$110.$ An additional $$600,000$ of debentures are converted on March $31,2013.$ The market price of the common stock is then $$115.$ Accrued interest at Marsh $31$ will be paid on the next interest date.

Bond premium is amortized on a straight$-$line basis.

Instructions

Make the necessary journal entries for:

$($a$)$ December $31,2012.$

$($b$)$ January $1,2013.$

$($c$)$ March $31,2013.$

$($d$)$ June $30,2013.$

Record the conversions using the book value method.