2. On January 1, 2021, Lynbrook Corporation issued $4 million of 7%, 15-year convertible bonds at 102. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of $1 par common stock. Scan House, Inc. purchased 20% of the issue as an investment. On July 1, 2021, Scan House converted all of its bonds into common stock of Lynbrook. The market price per share for Lynbrook was $32 at the time of the conversion. Both companies use the straight-line method for amortization. Required: 1. Prepare the journal entries for the issuance of the bonds on the issuer and the investor's books. 2. Prepare the journal entries for the conversion on the books of the issuer and the investor. 2. On January 1, 2021, Lynbrook Corporation issued $4 million of 7%, 15-year convertible bonds at 102. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of $1 par common stock. Scan House, Inc. purchased 20% of the issue as an investment. On July 1, 2021, Scan House converted all of its bonds into common stock of Lynbrook. The market price per share for Lynbrook was $32 at the time of the conversion. Both companies use the straight-line method for amortization. Required: 1. Prepare the journal entries for the issuance of the bonds on the issuer and the investor's books. 2. Prepare the journal entries for the conversion on the books of the issuer and the investor