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Cullumber Inc. issued $\frac{?}{?}$$$3,600,000of$ convertible $5-$year bonds $on$ July $1,2025.$ The bonds provide for$\frac{6}{\%}$ interest payable semiannually $on$ January $1$ and July $1.$ The discount $in$ connection with the issue was $\frac{?}{(\frac{?}{?}\text{\$}96,000\frac{?}{?})},$ which $is$ being amortized monthly $on$ a straight$-$line basis.

The bonds are convertible after one year into $15$ shares $of$ Cullumber Inc.$\text{'}s\frac{?}{(\frac{?}{?}\text{\$}1\frac{?}{?})}$ par value common stock for each $\frac{?}{?}$$$1,000of$ bonds.

$On$ October $1,2026,\frac{?}{?}$$$432,000of$ bonds were turned $in$ for conversion into common stock. 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.

Prepare the journal entries $to$ record the conversion, amortization, and interest $in$ connection with the bonds $asof$ the following dates. $(Credit$ account titles are automatically indented when amount $is$ entered. $Do$ not indent manually. $Ifno$ entry $is$ required, select $"No$ Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

$(a)$ October $1,2026.(Assume$ the book value method $is$ used.$)$

$(b)$ October $31,2026.$

$(c)$ December $31,2026,$ including closing entries for end$-of-$year.

$No.$ Date

$(a)$ Oct. $1,$

Discount $on$ Bonds Payable

Common Stock

Discount $on$ Bonds Payable

Paid$-in$ Capital $in$ Excess $of$ Par $-$ Common Stock

$(To$ record conversion $of$ bonds $to$ common stock$)$

Oct. $1,$

$2026$

$(To$ record payment $of$ interest due $on$ converted

bonds$)$

$(b)\{$:$[$ Oct. $31,],[2026]]$

Discount $on$ Bonds Payable

$(To$ record amortization $of$ discount $on$ bonds$)$ Oct. $31,$

$2026$

Interest Payable

$(To$ record accrual $of$ interest payable $on$ bonds$)$

Dec.

$(c)31,$

$2026$

Discount $on$ Bonds Payable

Discount $on$ Bonds Payable

$(To$ record amortization $of$ discount $on$ bonds$)$

Dec.

$31,$

$2026$

$(To$ record accrual $of$ interest payable $on$ bonds$)$

Dec.

$31,$

$2026$

$(To$ close expense account$)$

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