The December $31,2025,$ balance sheet $of$ Metlock Corp. $isas$ follows.

$10\%$ callable, convertible bonds payable semiannual interest

dates April $30$ and October $31$; convertible into $6$ shares $of$ $$25$

par value common stock per $$1,000of$ bond principal; maturity date April $30,2031$

$$443,000$

Discount $on$ bonds payable

$7,296$

$$435,704$

$On$ March $5,2026,$ Metlock Corp. called all $of$ the bonds $asof$ April $30$ for the principal plus interest through April $30.By$ April $30,$ all

bondholders had exercised their conversion $to$ common stock $asof$ the interest payment date. Consequently, $on$ April $30,$ Metlock

Corp. paid the semiannual interest and issued shares $of$ common stock for the bonds. The discount $is$ amortized $on$ a straight$-$line basis.

Metlock uses the book value method.

Prepare the entries $to$ record the interest expense and conversion $on$ April $30,2026.$ Reversing entries were made $on$ January $1,2026.$

List all debit entries before credit entries. 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.

Account Titles and Explanation

Debit

Creditthe december $31,2020,$ balance sheet $of$ Metlock Corp. $is$ a follows. $10\%$ callable, convertible bonds payable semiannual interest dates April $30$ and October $31$; convertible into $6$ shares $of$ $$25$ par value common stock per $$1000of$ bond principal