Junior Incorporated has $3,000,000 of convertible bonds payable outstanding, with a bond premium of $30,000 also on the books. The bondholders have notified Junior Incorporated that they wish to convert the bonds into shares on April 15. Specifically, the bonds may be converted into 400,000 of Junior’s common shares.

a. What is Junior’s carrying amount of its convertible bonds payable prior to the conversion?

b. Journalize Junior’s conversion of the bonds payable into common shares. No explanation is required.