On January 2, 1976, the Oklahoma Corporation issues \(\$ 1\) million of 20 -year, \(\$ 1,000\)-parvalue, 6-percent semiannual coupon bonds at par. Each \(\$ 1,000\) bond is convertible into 40 shares of \(\$ 1\)-par-value common stock. The Oklahoma Corporation's credit rating is such that it would have to issue 8 -percent semiannual coupon bonds if the bonds were not convertible and if they were to be issued at par. On January 2, 1980, the bond issue is converted into common stock. The common stock has a market price of \(\$ 45\) a share on January 2, 1980 . Present the journal entries made on January 2, 1976 and 1980, under generally accepted accounting principles, to record the issue and conversion of the issue.