P$15-2($LO$1)$ Entries for Conversion, Amortization, and Interest of Bonds Volker Inc. issued convertible bonds on July $1,2020.$ Additional information on these bonds follows: Interest has been accrued monthly and paid as due. At the time of conversion any accrued interest on bonds being converted is paid in cash. Instructions:

Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates.

$($a$)$ August $1,2021.($Assume the book value method is used.$)$

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$\backslash$hline $2021$ & & Debit & Credit $\backslash \backslash$

$\backslash$hline Aug. $1$ & & & $\backslash \backslash$

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Monthly Amortization Schedule

Unamortized discount on bonds payable:

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$\backslash$hline $2021$ & & Debit & Credit $\backslash \backslash$

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$($b$)$ August $31,2021$

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$\backslash$hline $2021$ & & Debit & Credit $\backslash \backslash$

$\backslash$hline Aug. $31$ & & & $\backslash \backslash$

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$\backslash$hline $2021$ & & Debit & Credit $\backslash \backslash$

$\backslash$hline Aug. $31$ & & & $\backslash \backslash$

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$\backslash$end$\{$tabular$\}($c$)$ December $31,2021,$ including closing entries for end$-$of$-$year.

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$\backslash$hline $2021$ & & Debit & Credit $\backslash \backslash$

$\backslash$hline Dec. $31$ & & & $\backslash \backslash$

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$\backslash$hline Dec. $31$ & & & $\backslash \backslash$

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$\backslash$hline Dec. $31$ & & & $\backslash \backslash$

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$\backslash$end$\{$tabular$\}$

Interest Expense Schedule