i NEED A DETAIL EXPLANATION OFTHIS PROBLEM. Through out the solution, I do not know how they get these number from (these number that I bold it out). Can you help me??

Convertible Bonds.

Garr Co. issued $4,000,000 of 12%, 5-year convertible bonds on December 1, 2014 for $4,016,900 plus accrued interest. The bonds were dated April 1, 2014 with interest payable April 1 and October 1. Bond premium is amortized each interest period on a straight-line basis. Garr Co. has a fiscal year end of September 30.

On October 1, 2015, $2,000,000 of these bonds were converted into 28,000 shares of $15 par common stock. Accrued interest was paid in cash at the time of conversion.

Instructions

(a) Prepare the entry to record the interest expense at April 1, 2015. Assume that interest payable was credited when the bonds were issued (round to nearest dollar).

(b) Prepare the entry to record the conversion on October 1, 2015. Assume that the entry to record amortization of the bond premium and interest payment has been made.

Solution 16-135

(a) Interest Payable.............................................................................. 80,000

Interest Expense............................................................................. 158,700

Premium on Bonds Payable........................................................... 1,300

Cash.................................................................................... 240,000

Calculations:

Issuance price $4,016,900

Par value 4,000,000

Total premium $ 16,900

Months remaining 52 (WHERE DID NUMBER COME FROM??)

Premium per month $325

Premium amortized (4 $325) $1,300