1. (a) Ball Corporation redeemed $380,000 (par value) of its bonds on June 30, 2017, at 102. The carrying value of the bonds on the redemption date was $371,500. The bonds pay annual interest and the interest payment due on June 30, 2017, has been made and recorded.

2. (b) Horton, Inc. redeemed $400,00 (par value) of its bonds at 96 on June 30, 2017. The carrying value of the bonds on the redemption date was $395,000. The bonds pay annual interest and the interest payment due on June 30, 2017, has been made and recorded.

3. (c) Valley Company has $80,000 (par value), 10%, 12-year convertible bonds outstanding. These bonds were sold at face value and pay annual interest on December 31 of each year. The bonds are convertible into 40 shares of Valley $4 par value common stock for each $1,000 par value bond. On December 31, 2017, after the bond interest has been paid, $30,000 par value of bonds were converted. The market value of Valley's common stock was $38 per share on December 31, 2017.

For each of the independent situations, prepare the journal entry to record the retirement or conversion of the bonds.