1. CONVERTIBLE DEBT AT TIME OF CONVERSION - On October 1, 2018, $3,000,000 bonds were converted into 30,000 shares of $10 par common stock. At the time of conversion, the unamortized premium is $8,000. Prepare journal entry to record the conversion of the bonds.

2. INDUCED CONVERSIONS - Use the information from Exercise 1, but assume that the issuer agree to pay the holders of its convertibles bonds an additional $15,000 if they will convert. Prepare journal entry to record the conversion of the bonds.

3. CONVERTIBLE PREFERRED STOCK - ABC Co. issued 600 shares of common stock (par value $2) upon conversion of 400 shares of preferred stock (par value $1) that was originally issued for a $150 premium. Prepare journal entry to record conversion of the stock.

4, STOCK WARRANTS - ABC Corp. issues $6,000,000 of bonds with a coupon rate of 8%. To help the sale, detachable stock warrants are issued at the rate of ten warrants for each $1,000 bond sold. It is estimated that the value of the bonds without the warrants is $5,896,000 and the value of the warrants is $404,000. The bonds with the warrants sold at 102 ($6,120,000). Prepare journal entry to record the issue of bonds.