2. On January 1, 2010, Lurline Corporation issued ten-year, 8 percent bonds with a face value of $500,000. The semiannual interest dates are June 30 and December 31. The bonds were issued for $437,740 to yield an effective annual rate of 10 percent. The accounting year ends on December 31. Prepare entries in journal form without explanations to record the bond issue on January 1, 2010, and the payments of interest and amortization of discount on June 30 and December 31, 2010. Use the effective interest method of amortization. Round answers to the nearest dollar. 3. A bond issue of $50,000 with a carrying value of $49,000 is converted into $10 par value common stock at the rate of fifty shares for each $1,000 bond. The entry to be recorded on the conversion of bonds is: 4. On December 31, 2009, the balance sheet of Gamma Corporation reported bonds outstanding with a face value of $2,000,000 and a related unamortized premium of $60,000. Interest is payable semiannually on January 1 and July 1. a. Prepare an entry in journal form without explanations to record the retirement of bonds with a face value of $1,200,000 on January 1, 2010, assuming the bonds were redeemed at a call price of 104. b. Prepare an entry in journal form without explanation on January 1, 2010, to record the conversion of bonds with a face value of $800,000 into common stock. Each $1,000 bond is convertible into 30 shares of $20 par value con mon stock