On January $1,2024,$ Madison Products issued $$45$ million of $8\%,10-$year convertible bonds at a net price of $$45\mathrm{.}5$ million.

Madison recently issued similar, but nonconvertible, bonds at $99($that is$,99\%$ of face amount$).$

The bonds pay interest on June $30$ and December $31.$

Each $$1,000$ bond is convertible into $30$ shares of Madison's no par common stock.

Madison records interest by the straight$-$line method.

On June $1,2026,$ Madison notified bondholders of its intent to call the bonds at face value plus a $1\%$ call premium on July $1,2026.$

By June $30,$ all bondholders had chosen to convert their bonds into shares as of the interest payment date.

On June $30,$ Madison paid the semiannual interest and issued the requisite number of shares for the bonds being converted.

Required:

Assume that Madison Products prepares its financial statements according to International Financial Reporting Standards using the net method.

& $2.$ Prepare the journal entries for the issuance of the bonds by Madison and interest payment for the June $30,2024.$

Prepare the journal entries for the June $30,2026,$ interest payment by Madison and the conversion of the bonds $($book value method$).$

Req $1$ and $2$

Prepare the journal entries for the issuance of the bonds by Madison and interest payment for the June $30,2024.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in whole dollars.

$\backslash$table$[[$No$,$Date,General Journal,,Debit,Credit$],[1,$January $01,2024,$Cash,V$,45,500,000,],[,$Convertible bonds payable,O$,,44,550,000$