Exercise 16-06 Your answer is partially correct. Try again. On January 1, 2020, Sandhill Corporation issued $3,960,000 of 10-year, 7% convertible debentures at 104. Interest is to be paid semiannually on June 30 and December 31. Each $1,000 debenture can be converted into 8 shares of Sandhill Corporation $100 par value common stock after December 31, 2021. On January 1, 2022, $396,000 of debentures are converted into common stock, which is then selling at $111. An additional $396,000 of debentures are converted on March 31, 2022. The market price of the common stock is then $116. Accrued interest at March 31 will be paid on the next interest date. Bond premium is amortized on a straight-line basis. Make the necessary journal entries for: (a) December 31, 2021. (c) March 31, 2022. (b) January 1, 2022. (d) June 30, 2022. Record the conversions using the book value method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) No. Date Account Titles and Explanation Credit Debit LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL LLLLLLLLLLLLLLLLL 134600 X (a) Dec. 31, 2021 interest expense Tpremium on bonds payable 40001 T cash 138600 (b) Jan. 1, 2022 022 Tbonds payable 396000 Tpremium on bonds payable 22176 | common stock 316800 T paid-in capital in excess 79200 (c) Mar. 31, 2022 interest expense 396000 premium on bonds payable 79200 115501 I interest payable (To record interest expense) Mar. 31, 2022 bonds payable 396000 3960007 Tpremium on bonds payable 30030 T common stock 316800 I paid-in capital in excess 109230 (To record the conversion) (d) Jun. 30, 2022 Vinte 2 interest expense 15840 premium on bonds payable 95040 interest payable 11550 Y cash * 122430 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS