1. On January 1, 2017, Swifty Corporation issued $4,360,000 of 10-year, 7% convertible debentures at 104. Interest is to be paid semiannually on June 30 and December 31. Each $1,000 debenture can be converted into 8 shares of Swifty Corporation $100 par value common stock after December 31, 2018. On January 1, 2019, $436,000 of debentures are converted into common stock, which is then selling at $109. An additional $436,000 of debentures are converted on March 31, 2019. The market price of the common stock is then $115. Accrued interest at March 31 will be paid on the next interest date. Bond premium is amortized on a straight-line basis. Make the necessary journal entries for:

(a)		December 31, 2018.		(c)		March 31, 2019.
(b)		January 1, 2019.		(d)		June 30, 2019.

Record the conversions using the book value method.

2. The following information has been taken from the ledger accounts of Nash Corporation.

Total income since incorporation		$296,000
Total cash dividends paid		55,000
Total value of stock dividends distributed		28,000
Gains on treasury stock transactions		19,000
Unamortized discount on bonds payable		30,000

Determine the current balance of retained earnings.