1. On April 1, 2020 Garr Co. issued $3,000,000 of 5%, 5-year convertible bonds at a price of 98. The bonds pay interest on April 1 and October 1. Bond discount is amortized each interest payment period on a straight-line basis.

On April 1, 2021, all of these bonds were converted into 20,000 shares of $5 par common stock.

a) Prepare the entry to record the original issuance of the convertible bonds.

b) Prepare the entries to record the interest payment and discount amortization at October 1, 2020 and April 1, 2021.

c) Prepare the entry to record the conversion on April 1, 2021. (6 points)