The Tramot Corporation has $2,000,000 of 6 percent bonds outstanding.

There is $40,000 of unamortized discount remaining on the bonds after the March 1, 20x6, semiannual interest payment. The bonds are convertible at the rate of 20 shares of $10 par value common stock for each $1,000 bond. On March 1, 20x6, bondholders presented $1,200,000 of the bonds for conversion. Prepare the entry to record the conversion of the bonds..