The Daglar Corporation has $400,000 of 6 percent bonds outstanding. There is $20,000 of unamortized discount remaining on these bonds after the July 1 , 20x8, semiannual interest payment. The bonds are convertible at the rate of 40 shares of $5 par value com- mon stock for each $1,000 bond. On July 1, 20x8, bondholders presented $300,000 of the bonds for conversion. Prepare the entry to record the conversion of the bonds.E-1